The Iraqi Central Bank and the Money Laundering Reporting Office may also liaise with foreign authorities that supervise financial establishments or markets, as well as foreign criminal authorities, in order to exchange information and documents needed to carry out its duties in the fight against money laundering.
In case the financial institution cannot form a reasonable image regarding the identity of the customer or the beneficial owner, it must report any suspicious transactions to the Money Laundering Reporting Office.
The financial institution must immediately report to the Money Laundering Reporting Office if it is believed that the proposed transaction or series of transactions are suspicious and seek the advice and directives of the Reporting Office.
A new AML/CFT Office will act as Iraq's financial intelligence unit (FIU), replacing the current Money Laundering Reporting Office
(MLRO) at the CBI.
The probe comes after some suspicious transactions were reported to the Swiss Money Laundering Reporting Office
In addition, the lack of implementing legislation, weak compliance enforcement by the Central Bank of Iraq (CBI), and the lack of support to the Money Laundering Reporting Office
(MLRO), Iraq's financial intelligence unit, undermine Iraq's ability to counter terrorist financing and money laundering.
The probe was started by Switzerland's Money Laundering Reporting Office
after it received a complaint from London-based Hermitage Capital Management, which claimed that the husband of a former Russian tax official used Credit Suisse (NYSE: CS) bank accounts to launder money.