Iraq agrees to work with FATF on financial crime, US official says

BAGHDAD, Iraq — A US official said on Friday that Iraq has agreed to cooperate with the Financial Action Task Force (FATF) and has begun taking steps in that direction. The official told Shafaq News that the decision followed a roughly two-year review and reflects Baghdad's willingness to address strategic gaps in its system for combating money laundering and terrorist financing. The official said Iraq has shown political will to align with international standards and was urged to continue the momentum and implement the FATF action plan swiftly. No further details on the timeline or specific measures were provided. Separately, sources who spoke to Shafaq News said Prime Minister Mohammed Shia' al-Sudani's ongoing shake-up of government positions covers more than 100 officials and aims to reshape centers of influence within the state, going beyond routine administrative changes. According to those sources, US Special Envoy for Iraq Tom Barrack discussed with Sudani issues related to the management of sovereign institutions, not just the formation of the government and the distribution of portfolios. The same sources said an understanding was reached to remove the vice prime minister posts and shelve a proposed Federal Security Ministry that would have covered the Popular Mobilization Forces and other armed groups. The claims attributed to unnamed sources could not be independently verified.