FATF assessment global recognition of Iraq's commitment and significant economic gains

Baghdad-INA
Since becoming prime minister, the Iraqi government, headed by Mohammed Shiaa Al-Sudani, has moved to address the issues that accompany the economic sector in Iraq and fully comply with international standards in the fight against money laundering and terrorism financing (AML/CFT).
As a result of the government’s move and the efforts made by it, the Financial Action Task Force for the Middle East and North Africa region adopted Iraq’s report on combating money laundering and terrorist financing, which reflects positively on Iraq in several aspects and levels, including achieving significant economic gains, stimulating economic activities and enhancing the country’s reputation at the level International.
Positive review
 
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, told the Iraqi News Agency (INA): “Iraq received a positive evaluation in the recent meeting held by the Financial Action Organization for the Middle East and North Africa in the State of Bahrain, which is one of the most important international groups concerned with evaluating... The role of member countries in combating money laundering and terrorist funds.
 
Saleh added, "The group's report showed significant positive progress in Iraq's role in confronting criminal financial activities, due to the sobriety of the financial, banking, and legal systems of the Republic of Iraq in confronting criminal financial activities."
 
Global certification and recognition
 
He pointed out that the evaluation comes as a testimony and broad positive global recognition of our country’s commitment to international standards in combating criminal financial activities related to money laundering and terrorist funds, and that such an evaluation will enhance our country’s reputation and provide factors of confidence in the financial and banking system of Iraq.”
 
He continued: "It is also no secret that such an evaluation will inevitably help attract foreign investments, and at the same time enhance the business environment in our country, which attracts more foreign investments to work in our country, as investors are reassured that our country has a safe and transparent financial system."
 
Strengthening the value of the dinar
 
For his part, the researcher and academic in economic affairs, Ahmed Saddam, told the Iraqi News Agency (INA): “One of the most important results of Iraq’s continued commitment to combating money laundering is that this commitment will contribute to reducing the financial waste represented by the leaking of dollars outside Iraq it will also constitute an essential factor in achieving stability in the dollar exchange rate, even if relatively, in other words, enhancing the value of the local currency.”
Saddam added, “Most important of all is that this commitment results in Iraq not being included in the gray list that represents high-risk countries in other words, Iraq’s commitment to the recommendations reduces the level of economic risks, and this is an important point that is taken into consideration by foreign companies that wish to invest in Iraq".
 
Stimulating economic activities
 
He pointed out that "this commitment will contribute to reducing the financing of armed groups and terrorism, and this will push towards achieving stability and gradually moving various economic activities together with the combination of other positive factors."
 
Right track
 
In turn, the President of Al-Furat Al-Awsat Technical University, Hassan Latif Kazem, told the Iraqi News Agency (INA): “The recent statement of the Financial Action Task Force organization stated that Iraq is committed to recommendations in the field of combating money laundering and terrorist financing, and this indicates that the country is on the right track serious steps have been taken to improve the financial and legal system in accordance with international standards related to combating corruption and money laundering.
Kazem noted, “The expected gains in this regard are improving the international classification through compliance with the recommendations, and making Iraq more attractive to foreign investments, as well as more international cooperation with Iraq in the future, which could facilitate trade operations with banks and financial institutions through... Reducing the risks associated with financial transactions due to Iraq’s commitment to anti-money laundering standards.”
 
 
Enhancing Iraq's international reputation
 
He pointed out that "this could enhance Iraq's international reputation through commitment and high responsibility to combat corruption and financial crime and everything related to these practices," stressing that "this commitment would enhance confidence in the financial and local system, enhance the official use of the banking system, and reduce the scope of the economy unofficial".
He concluded by saying: "In general, it is possible to say: Compliance with the recommendations of the International Financial Action Committee represents an important step in the direction of enhancing financial and economic stability and opening new horizons for development and greater confidence in Iraq and future openness."
 
Adoption of the Iraq report
 
The Anti-Money Laundering and Terrorist Financing Council announced last Wednesday that the Financial Action Task Force for the Middle East and North Africa region had adopted Iraq’s report on combating money laundering and the financing of terrorism.
 
A statement by the Council, received by the Iraqi News Agency (INA), stated: “The Middle East and North Africa Financial Action Task Force (MENAFATF), in its general meeting held in the Kingdom of Bahrain for the period from May 19-23, 2024, adopted the Mutual Evaluation Report for the Republic of Iraq, which it reflects its great commitment to applying international standards to combat money laundering and terrorist financing, and the report reflects the strong system in Iraq to combat money laundering and terrorist financing, and the important efforts made by the state to combat these crimes in accordance with international standards in this regard.”
 
The statement added, "The report focuses on understanding the risks of money laundering and terrorist financing, and the effectiveness of implementing measures to combat these crimes, including international cooperation, confiscation of criminal proceeds, and investigation and prosecution procedures."
 
He continued: “On this occasion, we extend our sincere thanks to Prime Minister Muhammad Shiaa Al-Sudani and the Chairman of the Supreme Judicial Council, Faiq Zaidan, for the support they provided for the evaluation process. We also extend our thanks to the office and members of the Anti-Money Laundering and Terrorist Financing Council and all judicial and governmental bodies and central bank formations that contributed and worked over the past two years, we have provided the evaluation requirements in a way that reflects the real reality of effective judicial and government procedures in developing the system to combat money laundering and terrorist financing.”