Financial Crime World

Iraq’s Fight Against Money Laundering and Terror Financing: Progress Made Under First National Strategy

A Major Achievement for Iraq’s Compliance with International Standards

BAGHDAD, IRAQ - The Iraqi government has made significant strides in combating money laundering and terror financing since the implementation of its first national strategy in 2017. According to a recent report, Iraq has been moved from regular follow-up status to biennial updates by the Middle East and North Africa Financial Action Task Force (MENAFATF), a major achievement in the country’s efforts to comply with international standards.

Key Players in Combating Money Laundering and Terror Financing

  • The Iraqi National Security Service (INSS) plays a crucial role in collecting and analyzing intelligence information on terrorist organizations.
  • The Counter Terrorism Service (CTS) focuses on eliminating terrorism activities through strategic plans and operations.
  • The Ministry of Interior’s Directorate of Combating Organized Crime has made significant progress in combating money laundering, financing of terrorist groups, and smuggling of antiquities and weapons.

Role of the AML/CFT Office

The AML/CFT office, established by the Central Bank of Iraq, works closely with other entities to monitor suspicious activities and take appropriate legal action. The office has developed a database containing information on adjudicated cases and suspicious reports submitted by non-banking and financial institutions.

Judiciary’s Role in Examining Suspicious Transactions

  • The Judiciary Authority examines STRs (Suspicious Transaction Reports) received from the AML/CFT office.
  • The Presidency of the General Prosecution collects evidence to support judiciary decisions.

Capacity Building for Staff and Judges

Training programs have been conducted through coordination with the AML/CFT office, including local and international workshops. These programs aim to build capacities and capabilities of staff and judges in combating money laundering and terror financing.

Achievements Under the First National Strategy (2017-2020)

  • Iraq’s move from regular follow-up status to biennial updates by MENAFATF.
  • Significant improvements and modifications made to technical infrastructure, communication systems, and security features.
  • Development of a detailed database and correspondences’ follow-up and archiving system.
  • Establishment of a secure communication system called I2N for information exchange with other entities.

Looking Ahead

The country’s progress is expected to continue under the new national strategy, which will focus on enhancing its capabilities in this area. These achievements demonstrate Iraq’s commitment to combating money laundering and terror financing, and its efforts to comply with international standards.