Financial Crime World

Iraq Establishes Office to Enforce Banking Regulations Against Money Laundering

Baghdad, Iraq - Central Bank Takes Major Step to Combat Financial Crimes

In a significant move to combat financial crimes, the Central Bank of Iraq has established an Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Office. This new office will operate as a fully-fledged public department with its own administrative and financial autonomy.

Key Features of the AML/CFT Office

  • Headed by a General Manager: The manager will have at least 15 years of experience in finance, a strong background in AML/CFT regulations, an initial university degree, and specialized knowledge in the field.
  • Implementation and Enforcement of Banking Regulations: The office will be responsible for implementing and enforcing banking regulations to ensure compliance with international standards on anti-money laundering regulations.
  • Training and Guidance: The office will provide training and guidance to financial institutions on compliance with international standards.
  • Collaboration with Law Enforcement Agencies: The office will work closely with law enforcement agencies and regulatory bodies to identify and prevent suspicious transactions and activities.

Background

The establishment of the AML/CFT Office follows years of pressure from international organizations, including the Financial Action Task Force (FATF), which has been critical of Iraq’s lax banking regulations. The FATF has repeatedly placed Iraq on its “grey list,” warning that the country’s inadequate measures against money laundering pose a threat to global financial stability.

Next Steps

The AML/CFT Office will play a crucial role in strengthening Iraq’s banking sector and ensuring compliance with international standards. As Iraq continues to rebuild its economy and establish itself as a major player in the global financial landscape, this office marks an important step towards ensuring the integrity and stability of its banking system.

This move is expected to have far-reaching implications for Iraq’s financial sector and will likely contribute to a more secure and stable environment for businesses and investors.