Iraq “Not Making Sufficient Progress” on Money Laundering

By John Lee.

As part of its on-going review of compliance with anti-money-laundering (AML) and countering the financing of terrorism (CFT) standards, the Financial Action Task Force (FATF) has singled out Iraq as a “jurisdiction not making sufficient progress.

In a statement, the FATF has said:

Despite Iraq’s high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies, the FATF is not yet satisfied that Iraq has made sufficient progress in improving its AML/CFT regime, and certain strategic AML/CFT deficiencies remain.

“Iraq should continue to work on implementing its action plan, including by:

(1) adequately criminalising money laundering and terrorist financing;

(2) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets;

(3) establishing effective customer due diligence measures;

(4) ensuring a fully operational and effectively functioning financial intelligence unit;

(5) establishing suspicious transaction reporting requirements; and

(6) establishing and implementing an adequate AML/CFT supervisory and oversight programme for all financial sectors. The FATF encourages Iraq to address its remaining AML/CFT deficiencies and continue the process of implementing its action plan.”

The Financial Action Task Force is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.  

The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. 

The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

(Source: FATF)

(Money laundering image via Shutterstock)

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