Financial Crime World

Iraq’s Central Bank Introduces New Regulations for International Money Transfers

Comprehensive Regulatory Framework

The Central Bank of Iraq has recently introduced a comprehensive regulatory framework to govern overseas money transfers. This new framework aims to strengthen the roles of both banking and non-banking financial institutions in facilitating foreign trade.

Key Features of the Framework

  • Only officially registered companies, validated investment or industrial projects, small enterprises, and foreign company branches may purchase foreign currency through the platform.
  • Monthly limits apply for these transactions.
  • Permissible transactions are strictly confined to financing foreign trade, transferring financial proceeds from legitimate sources, and making payments on existing banking facilities outside Iraq.

Banking Regulations

Before subscribing to the platform, banks must obtain comprehensive data from requesting customers regarding the details of the transfer. This includes information on the final beneficiary and intermediary institutions.

  • The equivalent amount in dinars must be deposited into the bank’s account with the Central Bank designated for subscription operations.
  • Banks will need to provide this information for scrutiny and supervision purposes.

Scrutiny and Supervision

The Central Bank retains the authority to scrutinize all data and documents related to the subscription process. This is done to verify their validity and compliance with regulations. Unaddressed cases will be reviewed individually by relevant departments and presented to senior management for decision making.

Benefits of Regulations

The new regulations aim to uphold the stability of exchange rates while safeguarding against financial crimes such as money laundering or terrorist financing.

By introducing these regulations, Iraq’s Central Bank is taking a proactive approach to managing international money transfers. This move is expected to have a positive impact on the country’s financial sector and contribute to its economic growth.