STATUS OF THE RV , PART. 3 BY MNT GOAT

 STATUS OF THE RV , PART. 3

Article 3 Begins Here:

IRAQ MPS SET TO APPROVE ANTI-MONEY LAUNDERING LAW

Members of Iraq’s counter-terrorism force take part in an intensive security deployment in Baghdad’s Al-Adel district October 28, 2014. The elite counter-terrorism unit was deployed to the streets of the capital Baghdad on Tuesday to chase sleeper cells, while heavily armed and masked members patrolled the streets of Baghdad’s Sunni neighborhood of Al-Adel to carry out vehicle checks and search for people who are wanted. REUTERS/Ahmed Saad 

IRAQ IS STEPPING UP EFFORTS TO CURB MONEY LAUNDERING AND TERRORISM FINANCING.

Majda Mohsen, ZAWYA

July 21, 2015

Iraq is stepping up efforts to curb money laundering and terrorism financing.

Iraq’s parliament is expected to soon endorse a new law that aims to combat money laundering and terrorism financing, the government’s economic adviser said.

Mazhar Mohammad Saleh told TR Zawya that the draft law, which was approved by the cabinet in June, would be more inclusive than a 2004 law that was drawn up by the Coalition Provisional Authority. He said the new law would cover tax evasion, smuggling of antiquities and cash as well as corruption.

“The new law will draw additional policies, legislations and procedures to chase and trace money and smugglers through a national council,” Saleh said.

“It will also meet Iraq’s financial interest and open the way for the country to conduct economic activities at the international level,” he added. “Between 3-5% of Iraqi GDP has been lost due to smuggling during the past 10 years as a result of money laundering.”

(Mnt Goat – this last statement highlighted is exactly where I am going with getting into the details of the AML today. One thing leads to another. They needed sound AML laws in order to move ahead internationally.) 

The Financial Action Task Force (FATF) said in June that Iraq has not made sufficient progress to stem money laundering and terrorism financing. It said Baghdad needed to adequately criminalise such acts, establish a legal framework for identifying, tracing and freezing terrorist assets, establish effective customer due diligence measures and a financial intelligence unit, introduce suspicious transaction reporting requirements and put in place a supervisory and oversight program for all financial sectors.

(Mnt Goat – yes, this is why we didn’t see and could not have seen the RV back then. Get it now?) 

“Punishments imposed under the old law were ridiculous, with those convicted of money laundering facing no more than four years in jail,” said legal expert Tariq Harb.

The draft law is being introduced at a time when global efforts are being exerted to cut off the funding of militant group Islamic State, which has taken control of large swathes of Iraq and Syria, and whose main sources of revenue include bank looting and extortion, control of oil fields and refineries and cash smuggling.

The Iraqi government and several global financial institutions have taken steps to prevent banks in territories held by Islamic State from accessing the international financial system, FATF said in a report issued in February.

Building confidence

Naim Khudair, director general of the Anti-Money Laundering Office at the Central Bank of Iraq, said the government had pledged to pass new legislation for anti-money laundering and terrorism financing by October 2015.

“There are instructions to give special importance to monitoring bank transactions by politicians and their families in addition to monitoring their dealings in real estate and gold,” Khudair said.

Central Bank Governor Ali Al Allaq said the new law would help reassure foreign investors.

“The new law will facilitate the entry of big companies into Iraq and increase their confidence in the country’s economic environment,” he said.

The deteriorating security situation, poor governance and inconsistent regulations have kept Iraq at low ratings of global rankings for doing business, according to the World Bank.

Mithaq Al Hamidi, a member of parliament’s economy and investment committee, said that while it would prove difficult for Iraq to recover smuggled funds, the new law would have a greater impact in preventing illegal transactions.

MP Najeeba Najeeb, another member of the committee, said that the new draft law was backed by all political parties. But she said that more cooperation between the executive, legislative and judiciary branches were needed to tackle corruption and money laundering.

© Zawya 2015

END OF PAST ARTICLES

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RV UPDATE: Back screen rate for dinars showed up as approximately $5 this morning at JPMorgan Chase

 

TRANSFORMATION IS A FINGERPRINT… “ESREFLAK” RESHAPES THE RELATIONSHIP BETWEEN CITIZENS AND MONEY.

 TRANSFORMATION IS A FINGERPRINT… “ESREFLAK” RESHAPES THE RELATIONSHIP BETWEEN CITIZENS AND MONEY.

Baghdad/Al-Masala: Iraq has achieved a qualitative leap in the electronic banking sector, ranking third in the Arab world in the number of bank cards issued, with a rate exceeding 46.5 cards per 100 people. This rate puts Iraq ahead of Jordan and Morocco, and close to the Gulf states, which have long led the field.

This progress was based on a dual strategy that combined institutional support from the Central Bank of Iraq with popular support through awareness campaigns that met with a remarkable response, most notably the “Spend It” campaign, which sparked a wave of cultural change in the way people handle money.

In a short period of time, the campaign was able to break through the walls of cash habits, replacing them with easy and safe digital options. Hashtags like #spendyours and #makeyouruseseasier flooded social media platforms, transforming from mere advertising slogans into real-life experiences shared by people.

Haider Al-Zaidi tweeted on the “X” platform, saying: “This is the first time I have paid with a fingerprint and without cash at Abu Ammar’s store. Thank you to the #SpendYou campaign, which taught me this feature and facilitated the procedures.” This is a common testimony among new users of electronic payment.

The campaign invested more in field presence than in billboards, entering popular markets and signing partnerships with restaurants, gas stations, and even food stalls, giving it a popular feel uncommon among official digital transformation campaigns.

The Central Bank of Iraq confirmed in its latest data that electronic payment transactions increased by 62% during the first quarter of 2025 compared to last year, with more than 15 million card and point-of-sale (POS) payment transactions recorded. This reflects widespread acceptance of a more reliable technical infrastructure.

The campaign focused on the concept of simplicity of use and security of the experience, removing the psychological and cultural barriers associated with fear of financial technology, especially in a country where a large portion of the economy still operates in cash and on the margins of banking.

The campaign was integrated into a comprehensive national vision for the transition to a cashless economy. However, it did not follow the traditional path of digitization, opting instead for gradualism and partnership, using a language relatable to the people and tangible services on the ground.

Most Iraqi cities have witnessed a growing demand for card and mobile payments. This trend is evident in transportation stations, small shops, and even kiosks, which now display signs reading “We support you, spend it,” a direct reflection of the shifting business and societal mentality.

“Asreflak” gained double power because it wasn’t just a top-down decision, but rather the product of a need from below. Field monitoring showed that people were ready to embrace this change, but were waiting for trust, and now they have found it.

STATUS OF THE RV , PART. 3 BY MNT GOAT

 STATUS OF THE RV , PART. 3

Article 2 Begins Here:

IRAQ’S CENTRAL BANK UNDER INVESTIGATION FOR ALLEGED MONEY LAUNDERING

Country’s Supreme Judicial Council also probing allegations of involvement in terrorist financing by Central Bank of Iraq, along with 13 private banks

Published date: 26 December 2020  

Iraq’s Supreme Judicial Council is investigating the country’s central bank and 13 private banks over alleged involvement in money laundering and terrorist financing operations, lawmakers and officials have told Middle East Eye.

In response to a parliamentary probe that ended last month, the council is understood to be investigating cases of customs and tax evasion and potential fraud in connection with the foreign exchange auction run by the Central Bank of Iraq (CBI) and the 13 private entities.

A statement issued by the Supreme Judicial Council on Thursday said that the Rusafa Investigation Court, which oversees cases of integrity, money laundering and economic crimes, had decided to “bring in” the directors of the banks “for violating the procedures of the Anti-Money Laundering and Terrorism Financing Law (No 39) of 2015″.

“Biden will not change policy towards Baghdad, Iraq’s deputy prime minister says”

The statement did not mention any details of the “violations,” or the names of the banks involved. However, the Parliamentary Finance Committee revealed the existence of “suspicious operations” concerning officials in the CBI, who were reported to be aiming to exploit the foreign exchange auction.

MPs and bankers told Middle East Eye that the CBI, which does not deal with individuals, had become a hub for money laundering and currency smuggling due to weak supervisory measures.

To acquire US dollars, Iraq has an account with the Federal Reserve Bank of New York, which draws on Iraq’s vast oil reserves. As the Baghdad government sells oil in US dollars, it uses the currency to buy Iraqi dinars from the CBI in order to finance salaries and public services.

The CBI then sells the dollars to private banks with a mark-up of 10 dinars on the dollar. Instead of bringing the dollars back into the country, the CBI is understood to deposit it in foreign banks, outside of the country, in exchange for invoices presented by the private banks to cover imported goods, lawmakers and bankers told MEE.

‘False invoices for fake goods’

“The game is that these [private Iraqi] banks give false invoices for fake goods,” Mohammed Saheb al-Darraji, a member of the Parliamentary Financial Committee and the chairman of the parliamentary probe, told MEE.

“In other words, there are no goods for the money deposited outside Iraq, and this is money laundering, as the source of this money is unknown or illegal.

“The CBI has to investigate the invoices and impose fines. But the CBI has stopped checking bills since 2016, under the pretext that they are not responsible for this matter,” he added.

“The operation is deliberate. The CBI is ignoring this step due to bribes and political influence in order for the money laundering process to take place properly.”

‘There are no goods for the money deposited outside Iraq, and this is money laundering as the source of this money is unknown or illegal’

– Mohammed Saheb al-Darraji, chair of parliamentary probe

The investigative committee chaired by Darraji revealed that the period from 1 January to 1 September had seen the transfer of $27bn out of Iraq, while receiving no more than three percent of its customs revenues.

According to customs instructions, the merchant who imports goods from abroad must pay 15 percent of the value of the goods as customs, meaning that the annual customs revenues must reach 15 percent of the value of the sums transferred outside Iraq in dollars when it is transferred under the pretext of importing goods. “The customs revenues that Iraq is supposed to get are 15 percent of the value of the amount that was transferred, that is, $4bn. The actual receipt is only three percent, or $418m,” Darraji said.

“This means that the rate of waste reaches 12 percent. Where did this go?”

Until last week, the CBI used to buy $1 at 1,182 dinars from the Iraqi government and then sell it to private banks and financial transfer offices for 1,190 dinars.

Lawmakers and bankers told MEE that the private banks would then sell $1 to the final beneficiary at a price of 1,250 dinars, a difference of up to 60 dinars per dollar.

“The daily profit from this operation reaches $11m, while the monthly profit reaches $220m, while the annual profit reaches $2.64bn,” Sabah al-Saaidi, a member of the Parliamentary Integrity Committee, said in a televised parliament session last month.

“The only beneficiary of this operation is a group of private banks. Neither the government nor the citizen are beneficiaries of this process.”

Panic as prices rise

Most Iraqi political forces depend on illegal sources of funding, including through money laundering, commissions, extortion and oil and drug smuggling, lawmakers said.

There are at least 52 private banks in the country, according to the public records of the CBI, and most are either used or owned by political forces to participate in the foreign currency auction and conceal their funding sources, Parliamentary Financial Committee investigations revealed.

In an attempt to curb the smuggling of the dollar and reduce the annual budget deficit for 2021 – around $43bn – the Iraqi Ministry of Finance raised the dollar exchange rate to 1,450 dinars on Saturday, which immediately caused the prices of goods to rise sharply, causing panic among citizens.

Iraq hurtling towards a financial crisis that could leave millions unpaid.

While the government has defended the decision to devalue the dinar, which means it will get more Iraqi dinars from the central bank, the move threatens to spark popular demonstrations across the country.

A key adviser to Iraqi Prime Minister Mustafa al-Kadhimi told MEE that devaluation, tax increases and austerity measures were the “only option” to address the liquidity crisis after proposals to reduce public salaries had been rejected.

“The devaluation is a response to the urgent need to stop the collapse of the Iraqi economy, reduce the budget deficit and stop the bleeding of foreign currency – and this [is in response] to pressure from the World Bank and the International Monetary Fund,” the adviser said.

“Iranian and Turkish goods have been invading Iraqi markets, and the competing power of Iraqi goods… is almost non-existent, with complete reliance on oil sales. All these factors have forced the government to search for other financial resources to reduce the budget deficit.

“The country is heading for a real disaster and Kadhimi is trying to stop the bleeding with shocking measures,” the adviser added.

“All political forces know this and agreed to it, but they have actually started trading this issue, and a number of them have begun to mobilise demonstrations to protest against the government’s actions.”

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🚨 APRIL 1: Iraq’s Global Trade Switch Goes Live !! @DINARREVALUATION #iraqidinarinvestor #iraq

 

BAGHDAD OR ERBIL? WHO CONTROLS IRAQ’S WEALTH?

 BAGHDAD OR ERBIL? WHO CONTROLS IRAQ’S WEALTH?

Iran’s News Channels

The Iraqi Ministry of Oil declared two agreements between two American energy companies and the Kurdistan Regional Government of Iraq “null and void” due to their failure to obtain federal approval.

The World – Correspondents

The tense relationship between Baghdad and Erbil has once again come to the fore after the Kurdistan Region of Iraq signed two massive gas field development agreements with two American companies worth more than $110 billion. This move sparked widespread political and legal controversy and brought to the fore an old question: Who owns the decision-making power over Iraq’s resources?

Political analyst Naseem Abdullah told Al-Alam TV: “The Iraqi constitution states in Articles 110, 112, and 121 that the management of oil resources is a joint management between the region and the federal government. This provision is explicit, as the 2005 constitution stated that these resources are managed jointly by the region and the federal government. Currently, the region has violated the constitution through its unilateral management, which constitutes a breach of it.”

The agreement, announced by the Prime Minister of the Kurdish region, Masrour Barzani , includes the development of massive oil and gas reserves in the Mizan, Topkhana, and Kordemir fields, potentially transforming Kurdistan into a regional energy hub. However, Baghdad, through the Ministry of Oil, quickly declared the agreement invalid, asserting that it violates the constitution and a ruling by the Federal Supreme Court.

Law professor Mohammed Adiq told Al-Alam TV: “Regarding the relationship between the Kurdistan Regional Government and the federal authorities, it is governed by Articles 110, 114, and 112. Therefore, the expired Kurdistan Regional Government must partner with the federal government in managing oil and gas and concluding oil contracts.”

On the other hand, Erbil believes its actions are legal and within its jurisdiction, citing the absence of a federal law regulating the oil and gas sector. It asserts that the revenues will benefit both Kurdistan and Iraq.

Kurdish political analyst Hussein Al-Jaf said, “What happened is not a new contract, but rather the transfer of ownership of the project, which was operating in oil, from Kurdistan to another company. Therefore, there is no such thing as a renewed contract.”

This sharp contrast raises a highly complex legal and political issue. While Baghdad champions sovereignty over resources, Erbil asserts that it is exercising a constitutional right that is absent from the national agreement.

The relationship between Baghdad and Erbil remains hostage to intense disagreements over resource management, with Baghdad insisting on centralized decision-making and Erbil insisting on its constitutional rights. The absence of a national agreement is evident, making every crisis a renewed conflict between Baghdad and Erbil.

STATUS OF THE RV , PART. 2 BY MNT GOAT

STATUS OF THE RV , PART. 2

Article 1 Begins Here:

WITH NEW LAWS AND SOME HELP, IRAQ TURNED AROUND ANTI-MONEY-LAUNDERING PROBLEMS

The Iraqi government was removed last year from an international watchlist

By Samuel Rubenfeld, Feb. 28, 2019  

Iraqis celebrate the anniversary of the country’s victory over Islamic State, in the city of karbala.  Seven years ago, Iraq’s financial system was beset by problems.

An estimated $800 million in U.S. currency was illegally flowing out of Iraq every week, Iraqi auditors told American investigators at the time. And the central bank governor was dismissed after corruption had become institutionalized within the country’s government and political system.

Iraq landed on international watchlists for money-laundering failures. Since then, however, the country’s efforts to combat illicit finance have improved, and international watchdogs have taken notice.

Cleaning up corruption in Iraq has been the central bank’s biggest priority since he came in 2014, Ali Mohsen Ismail Al-Alaq, the current Iraqi central bank governor, said in an interview. His efforts, combined with input from the country’s leaders and U.S. and international experts, have started to pay off.

“This earned us respect from international organizations and opened opportunities for global financial institutions to come in,” Mr. Al-Alaq said.

Iraq passed a law in 2015 that criminalized money laundering and terrorism financing. It created an anti-money-laundering council within the central bank. It also created an office for combating money laundering and terror finance. The council became the authority for supervision of compliance, while the office was tasked with handling suspicious activity reports.

“This was important to give us the way to deal with the problems we had at that time,” Mr. Al-Alaq said. The effort established the infrastructure needed to support the country’s anti-money-laundering and counter-terrorism-financing efforts, he said.

Iraq had an unstructured banking system after the invasion and dealt with a lack of capacity to combat money laundering, said Ayham Kamel, head of the Middle East and North Africa practice at the Eurasia Group, a political risk consultancy.

“Now, things are significantly improved and the government is in a place where it seeks to preserve the integrity and the safety of the Iraqi financial sector,” he said. “It will continue to adjust its regulations and procedures to ensure compliance with the broad standards of the international and financial community.”

Money-laundering convictions in Iraq rose dramatically, according to a 2017 U.S. State Department report.

In June, the Financial Action Task Force, a Paris-based international watchdog, took the country off its list of countries failing to tackle money laundering.

Ali Mohsen Ismail Al-Alaq, governor of the Central Bank of Iraq, said cleaning up corruption is a priority. 

“Iraq has been dealing with some big problems over the years,” said John Sullivan, a former U.S. Treasury Department attaché to Iraq who now is a director with consultancy Financial Integrity Network.

“The government did a good job to get people to focus on what they needed to do under the FATF plan,” he said. They really have made progress against money laundering, Mr. Sullivan added, crediting Mr. Al-Alaq for the effort.

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