Financial Crime World

IRAQ LAUNCHES NEW LAW TO COMBAT MONEY LAUNDERING AND TERRORIST FINANCING

New Legislation Aims to Strengthen Iraq’s Financial Sector

Baghdad, Iraq - The Iraqi government has introduced a new law aimed at combating money laundering and terrorist financing. The legislation establishes a powerful Anti-Money Laundering and Terrorist Financing Bureau (Bureau) to oversee the country’s financial sector and ensure compliance with international standards.

Key Provisions of the Law

  • Establishes the Anti-Money Laundering and Terrorist Financing Bureau (Bureau)
  • Requires financial institutions and designated non-financial businesses and professions to take specific measures to prevent money laundering and terrorist financing
  • Sets out obligations for financial institutions, including:
    • Identifying and verifying client identities through reliable sources
    • Understanding the purpose and nature of business relationships
    • Monitoring transactions to ensure compatibility with available information about clients and commercial activities
  • Requires the Bureau to submit an annual report on its activities to the Council of Ministers
  • Empowers the Bureau to suspend financial operations where necessary, and to refer cases to public prosecution

Reaction from Financial Institutions

“We welcome this new law as a major step forward in combating money laundering and terrorist financing,” said Ahmed Al-Mussawi, CEO of Iraq’s largest bank. “We are committed to ensuring that our financial institutions comply with the highest international standards.”

Next Steps

The Iraqi government has announced plans to implement the new law within the next six months. Financial institutions will be required to comply with the new obligations and procedures by this time.

In the meantime, the Bureau is expected to work closely with financial institutions to ensure a smooth transition to the new regime.

Conclusion

The law is seen as a major milestone in Iraq’s efforts to reform its financial sector and to bring it into line with international standards. It is expected to have a significant impact on the country’s ability to combat money laundering and terrorist financing, and to strengthen its position as an attractive destination for foreign investment.