The Central Bank of Iraq “CBI” has issued comprehensive regulations to combat Anti-Money Laundering (AML), Anti-Terrorism Financing “ATF”, and Proliferation Financing. These regulations are designed to establish a robust framework for financial institutions to detect, prevent, and respond to illicit financial activities. The regulations provide clear guidance on the principles and measures that must be adopted, including customer due diligence, risk management, internal regulations, record-keeping, reporting, and monitoring of suspicious activities. Financial institutions are expected to comply with strict regulations on handling high-risk transactions, terrorist financing, and proliferation risks, ensuring they adhere to international standards.
Main Topics
Definitions & Phases
- money laundering, terrorist financing, and proliferation financing are defined.
- Detailed phases of money laundering and terrorist financing
Principles for Combating Illicit Activities
- Know Your Customer (KYC)
- Risk-Based Approach
- Notification/Reporting
Responsibilities
- Board of Directors and designated officials
- External auditors
Internal Regulations & Record-Keeping
- Implementation of robust internal regulations
- Clear guidelines on types of records to retain, and retention periods
Due Diligence Measures
- Measures for customer acceptance and enhanced due diligence for high-risk clients
- Ongoing monitoring of transactions and reliance on third-party due diligence
Suspicious Transaction Indicators
Terrorist Financing & Proliferation
- Detailed phases of terrorist financing, from fundraising to fund usage
- Indicators for identifying transactions related to proliferation financing and terrorist activities
High-Risk Countries & Correspondent Banking
Penalties & Enforcement
Deterrent penalties for non-compliance and guidelines for banking secrecy