Iraq's central bank orders stricter financial checks on senior officials

BAGHDAD, Iraq — Iraq's Central Bank has directed financial institutions to apply enhanced due-diligence indicators to senior officials and individuals in senior positions. The directive aims to strengthen oversight of funds and account activity as part of efforts to combat money laundering and terrorist financing. Under the new framework, the indicators set out the minimum standards that must be applied to this category of customers. Financial institutions may develop additional indicators and scenarios based on their own activity profile and risk level. The bank's indicators include wealth or fund sources inconsistent with monthly income, high-value transactions incompatible with the person's position during or after their term in office, unexplained transfers to high-risk countries, and complex partnership structures designed to conceal the true beneficiary. Unexplained transactions involving family members and close associates, as well as adverse information pointing to corruption or financial crimes, will also be treated as risk indicators. No further details on implementation timelines or penalties for non-compliance were immediately available.