The Central Bank of Iraq has instructed all licensed banks to implement 79 updated scenarios for detecting suspected money laundering and terrorist financing, with all scenarios to be activated in their anti-money laundering systems by December 31, 2026. The update revises previously circulated scenarios to reflect modern technologies and products, drawing on Financial Action Task Force recommendations, Iraq’s 2015 legislation and the 2025 guidance on reporting suspicious transactions and activities. The scenarios address suspicious fund movements, misuse of digital channels and concealed commercial or ownership relationships. Monitoring indicators include rapid transfers through accounts, transactions split across banks or beneficiaries, and activity inconsistent with customers’ financial profiles. Digital payment scenarios flag geographically implausible card use, local card funding followed by foreign currency withdrawals abroad, and dealings with unlicensed cryptocurrency platforms or unidentified wallets. Suggested checks include linking transactions across accounts and channels, verifying sources of funds and examining device and location records. Trade scenarios focus on fictitious invoices, missing evidence of imported goods and unexplained changes to payment destinations, supported by checks on suppliers, shipping documents and commercial purpose. A substantial section addresses capital increases funded by unexplained contributions, financially incapable shareholders or temporary deposits that create the appearance of paid capital. Suggested verification includes tracing funding sources, assessing shareholders’ financial capacity and checking subsequent fund movements. The table assigns risk levels and proposes responses for specific cases. For potential sanctions matches, it recommends immediately suspending the account pending verification and notifying the competent authorities. For refusal to substantiate capital increase funding, it proposes enhanced due diligence followed by suspension of the transaction and reporting if the refusal persists.
Central Bank of Iraq requires banks to activate 79 updated money laundering and terrorist financing detection scenarios by December 31, 2026
The Central Bank of Iraq has directed all licensed banks to activate 79 revised scenarios for detecting suspected money laundering and terrorist financing in their monitoring systems by December 31, 2026. The scenarios address suspicious fund flows, digital payments and cryptocurrency dealings, fictitious trade and unexplained capital increases, with risk ratings and suggested verification or escalation measures.