CBI steps up monitoring of officials’ wealth
Shafaq News- Baghdad
The Central Bank of Iraq (CBI) has instructed financial institutions to tighten scrutiny of senior officials and other high-ranking public figures, targeting unexplained wealth and transactions linked to corruption, money laundering, and terrorist financing.
A CBI document sets minimum requirements for monitoring such customers during and after their time in office, including wealth inconsistent with declared income or known finances and unusual or high-value transactions that do not match their activities or positions.
Other red flags include dealings with high-risk jurisdictions without clear economic justification, unexplained financial activity involving relatives or close associates, and the use of third parties, companies, or complex ownership structures to conceal beneficiaries or sources of funds.
Banks must also consider credible information linking customers to corruption, bribery, fraud, or other financial crimes, along with insufficient documentation of assets and sudden changes in spending patterns or holdings.
The CBI said these criteria will form part of its supervisory activities when assessing the effectiveness of financial institutions’ anti-money laundering and counter-terrorist financing systems.
The directive comes amid Iraq’s nationwide Dawn Crackdown, launched on June 28 to pursue corruption cases, including illicit enrichment and unexplained wealth among officials and political figures. The campaign has revived the “Where Did You Get This?” initiative, introduced in 2023 to examine whether officials’ assets match their declared income.
On Aug. 28, the CBI imposed a precautionary asset freeze on 12 current and former political figures in connection with corruption investigations, requiring banks to identify and report any funds held in their names.
Read more: Corruption arrests in Iraq pass 210 under PM al-Zaidi
