Iraq: New measures target money laundering and terrorism financing
Shafaq News– Baghdad
Iraq’s Ministry of Interior said on Friday it has rolled out new measures to tighten financial oversight and curb money laundering and terrorism financing, part of ongoing efforts to meet international requirements and secure the country’s exit from the global “grey list.”
Interior Ministry spokesperson Colonel Abbas Al-Bahadli told Shafaq News that the ministry has launched parallel financial investigations aimed at tracking illicit proceeds linked to underlying crimes and preventing their reuse in money laundering or terrorism financing networks, pointing out that these steps are being carried out in close coordination with the anti-money laundering office to identify suspicious financial activity, particularly within commercial operations.
Al-Bahadli said the ministry also plays an active role in the national council for combating money laundering and terrorism financing, “helping shape financial and economic policies in line with international standards, notably the recommendations of the Financial Action Task Force (FATF).”
The Directorate for Combating Organized Crime is also tasked with enforcing relevant laws across its areas of responsibility as part of the broader framework.
The Interior Ministry confirmed on Wednesday that Iraq’s security status has been upgraded by the United Nations, placing the country among those considered stable. Iraq was moved from Category E —designated for very high-risk environments with strict operational constraints— to Category B, which reflects a lower-risk setting.
Iraq’s international standing has also improved, ranking 147th in the 2025 Global Peace Index, up from 151st in 2024 and 153rd in 2023, according to the Institute for Economics and Peace.
In recent months, the US Treasury Department has sanctioned more than 30 Iraqi individuals and entities for laundering billions through offshore fronts and illicit currency exchanges. It has also targeted more than a dozen companies and individuals in Hong Kong and the United Arab Emirates, accusing them of channeling funds to Iran’s military through oil sales and cryptocurrency.
