Financial Crime World

Iraq’s Financial Institutions Face Tougher Regime as Anti-Money Laundering and Counter-Terrorism Financing Office Steps Up Enforcement

Strengthened Regulatory Framework for Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF)

In an effort to combat financial crimes, Iraq has enhanced its regulatory framework for AML/CTF. The country’s AML/CTF supervisors have issued new guidelines outlining the duties of reporting entities, including financial institutions and designated non-financial businesses and professions.

Establishment of a Separate Entity

The Anti-Money Laundering and Terrorist Financing Law No. 39 requires the establishment of a separate entity within the Central Bank of Iraq to oversee AML/CTF compliance. The Office of Combating Money Laundering and Terrorism Financing (Money Laundering Reporting Office) was set up in 2007 and reconfigured in 2015.

Duties of Reporting Entities

Reporting entities must perform several duties, including:

  • Receiving and analyzing suspicious transaction reports
  • Suspending transactions if necessary
  • Transmitting information to the Public Prosecution’s office
  • Implementing a comprehensive compliance program to ensure adherence to AML/CTF regulations

Importance of Coordination

Iraq’s AML/CTF supervisors have emphasized the importance of coordination with government agencies and international organizations in combating financial crimes. The country is represented at conferences and international forums focused on money laundering and terrorism financing, and has established a national database for analyzing and disseminating data on potential money laundering or terrorist funding cases.

Training and Support

The Office of Combating Money Laundering and Terrorism Financing will also provide training workshops for concerned staff to keep them informed of the latest developments in AML/CTF regulations. The office will also:

  • Notify regulatory authorities of non-compliant financial institutions and non-financial businesses and professions
  • Provide technical support for agreements and treaties related to money laundering and terrorism financing

Improved Cooperation with International Partners

The new guidelines aim to strengthen Iraq’s AML/CTF regime and improve cooperation with international partners in the fight against financial crimes. Failure to comply with the regulations can result in severe penalties, including fines and even revocation of licenses.

Conclusion

Iraq’s strengthened regulatory framework for AML/CTF demonstrates its commitment to combating financial crimes and improving cooperation with international partners. The new guidelines are expected to enhance the country’s ability to detect and prevent money laundering and terrorist financing activities.