Financial Crime World

Iraq Updates AML/CFT Regulatory Framework to Enhance Compliance and Coordination

The Anti-Money Laundering and Countering Financing of Terrorism (AML/CTF) Office in Iraq has announced significant updates to its regulatory framework aimed at strengthening compliance and coordination among financial institutions, designated non-financial businesses and professions, and government agencies. The reforms are designed to enhance the country’s efforts in combating money laundering and terrorism financing.

Key Reforms

Reporting Entities

  • Must perform a range of duties, including:
    • Receiving and analyzing reports or data about suspected operations related to money laundering or funding for terrorism
    • Suspending financial transactions if necessary
    • Transmitting communications with the Presidency of the Public Prosecution
  • The AML/CTF Office must obtain additional information from reporting entities as needed to complete its analysis

Designated Non-Financial Businesses and Professions, Financial Institutions

  • Must establish a compliance program to ensure adherence to the AML/CTF law’s requirements
    • Coordinate with government agencies
    • Exchange information on money laundering and terrorism financing
    • Participate in international conferences and organizations
    • Support judicial authorities in implementing the law’s provisions

National Hub for Data Analysis and Dissemination

  • Establish a national hub for analyzing and disseminating data about potential money laundering or terrorist funding
  • Create a database accessible to the AML/CTF Office

Regulatory Authorities’ Responsibilities

  • Notify other competent authorities of any non-compliance by financial institutions or non-financial businesses and professions

Additional Measures

  • The AML/CTF Office will provide technical support for agreements and treaties relating to money laundering and terrorism financing
  • Hold training workshops for concerned staff to keep them informed of the latest developments in the field

Background

The AML/CTF Office was established in 2007 and reconfigured in 2015 to enhance its effectiveness in combating money laundering and terrorism financing. The office is responsible for implementing the Anti-Money Laundering and Terrorist Financing Law No. 39, which requires the establishment of a separate entity within the Central Bank of Iraq.

Conclusion

The updated regulations aim to enhance Iraq’s ability to combat money laundering and terrorism financing, and ensure the country meets its international obligations in this regard. The reforms demonstrate the AML/CTF Office’s commitment to strengthening compliance and coordination among financial institutions, designated non-financial businesses and professions, and government agencies to prevent and combat these serious threats to national security and the global economy.