The Impact Of Money Laundering On The Operations Of Banks In Iraq

Money laundering is classified as a punishable crime under Iraqi law due to its negative impact on the national economy. Therefore, this study aimed to define the role of the Central Bank of Iraq (CBI), as the primary monetary authority charged with combating money laundering. To achieve this goal, a descriptive and analytical approach was used. The study concluded that the crime of money laundering has long been deeply rooted in the Iraqi economy, and that the CBI contributed to its consolidation after the issuance of Law No. (39) of 2015 on Combating Money Laundering and the Financing of Terrorism. This was due to its role in mitigating the negative effects of this phenomenon, which included distortions in spending and consumption patterns, an increase in the balance of payments deficit, a liquidity crisis, and a collapse in stock markets. Ongoing studies have recommended strengthening international cooperation, investigations, and prosecutions related to money laundering, the extradition and prosecution of those wanted in money laundering cases through Interpol, and the conclusion of security agreements with countries, particularly regional and international ones. It is also recommended to adopt a policy of periodic reporting on banking activity, analyzing its results, and taking immediate action if any project or issue is reported to the relevant regulatory authorities.