Money Laundering Remains a Major Challenge for Iraqi Government
Despite efforts to curb the issue, money laundering is still widespread in Iraq, especially through cash transactions, according to Iraqi observers and businessmen.
ERBIL (Kurdistan 24) - Monetary policy, particularly money laundering, remains a significant challenge for Iraqi Prime Minister Mohammed Shia al-Sudani's government.
Despite efforts to curb the issue, money laundering is still widespread in Iraq, especially through cash transactions, according to Iraqi observers and businessmen.
Discrepancies in the dollar's value at the Federal Reserve Bank highlight another form of money laundering.
Although the rate of such activities has decreased, the practice continues, particularly in the buying and selling of dollars between banks and the free market, where the difference can reach 18,000 Iraqi dinars per 100 dollars.
"The dollar is priced at 132,000 dinars in the central bank and 150,000 dinars in the market. Where does the difference go, and who benefits from it? The evidence is clear in the market price of the dollar," noted banking experts.
Detecting corruption in money laundering remains challenging, though Iraq has made some progress through global rankings.
Mahmoud Dagher, director of the al-Janoob Islamic Bank, stated that based on the Financial Action Task Force (FATF) decisions for the Middle East and North Africa, Iraq's financial situation is safer, and the rate of money laundering is decreasing, though violations persist.
He emphasized that not all financial transactions constitute money laundering; some financial transfers are incomplete and do not meet international standards.
The Central Bank of Iraq previously identified the real estate sector as a major area for money laundering, which led to inflated property prices. This highlights the ongoing complexities and challenges in combating financial crimes in Iraq.
