Iraq Struggles to Implement Global Anti-Money Laundering and Counter-Terrorism Financing Regulations
Despite efforts to establish a robust anti-money laundering (AML) and counter-terrorism financing (CTF) regime, Iraq is still grappling with the implementation of global regulations.
Challenges in Implementing AML/CTF Regulations
According to the Anti-Money Laundering and Terrorist Financing Law No. 39, the Office of Combating Money Laundering and Terrorism Financing was established in 2007 within the Central Bank of Iraq’s structure. However, the office has faced numerous challenges in its efforts to combat money laundering and terrorist financing.
Duties of Reporting Entities
To comply with AML/CTF regulations in Iraq, reporting entities are required to perform several duties, including:
- Receiving and analyzing reports or data about operations suspected of using proceeds from original crimes, money laundering, or funding for terrorism
- Providing additional information to the office to complete its obligations
Authorities of the AML/CTF Office
The AML/CTF office has the authority to:
- Suspend financial transactions or activities if there is a reasonable suspicion of money laundering, terrorist financing, or predicate offenses
- Transmit communications with the Presidency of the Public Prosecution and alert competent authorities in such cases
Compliance Program for Designated Non-Financial Businesses and Professions
Designated non-financial businesses and professions in Iraq as well as financial institutions are required to implement a compliance program to help achieve the country’s goals in combating money laundering and terrorist financing.
International Cooperation and Efforts
Iraq has coordinated with international organizations and government agencies to exchange information on money laundering and terrorism funding. The country has also participated in conferences and international organizations focused on combating the funding of terrorism and money laundering.
National Database and Training Workshops
A national database has been created to analyze and disseminate data about potential money laundering or terrorist funding, and support judicial authorities in implementing the law’s provisions. The office also conducts training workshops for concerned staff and provides technical support for agreements and treaties relating to money laundering and terrorism financing.
Remaining Challenges
Despite these efforts, Iraq still faces significant challenges in implementing its AML/CTF regime. The country has been criticized for lacking adequate resources and infrastructure to effectively combat money laundering and terrorist financing.
Pledges from the Iraqi Government
The Iraqi government has pledged to continue working to improve the country’s AML/CTF regime and strengthen its cooperation with international partners to combat these threats. However, much work remains to be done to ensure that Iraq meets its global obligations and effectively combats money laundering and terrorist financing.