Financial sanctions and major repercussions .. An economist explains the effects of Iraq’s inclusion in the list of “dangerous countries”
7/8/2020 14:10
Baghdad today - Baghdad
Economic expert Rasim al-Akidi explained, Wednesday (08 July 2020), the effects of Iraq’s inclusion in the list of dangerous countries that record high rates of money laundering.
Al-Akidi said in an interview with (Baghdad Today), that "the decision of the European Union Commission to include Iraq in the revised list of high-risk countries regarding money laundering and terrorist financing will directly affect the country's credit situation, because the World Bank and the International Monetary Fund have always been given financial facilities and loans For Iraq on the basis of confidence in governments in the possibility of debt restoration through its mineral wealth and economic growth. "
He added: "But the European Commission's decision is very dangerous, and it will give a sign of distrust by international financial institutions, including the ten banks that are called mothers and who control the capital in the world, through papers, bonds and credit facilities, which will put Iraq in front of clear financial sanctions." .
He pointed out that "the decision of the European Commission will affect the file of foreign investment in Iraq with all its addresses, and will push companies to reconsider their investments, because the file of money laundering and terrorist financing is a serious matter that affects the movement of money transfer to investors in accordance with the law."
He pointed out that "large investment projects, especially in the energy file, will have a significant impact in accordance with the recent decision of the European Commission." Earlier in the day, the Iraqi Ministry of Foreign Affairs issued a statement on the situation of Iraq among the high-risk countries regarding money laundering and terrorist financing.
The Ministry’s media stated in a statement received (Baghdad today) that “Foreign Minister Fouad Hussein expressed Iraq’s disappointment at the decision of the European Union Commission to include Iraq in the revised list of high-risk countries regarding money laundering and terrorist financing,” after a message he sent to his counterparts ministers Europe Union.
Hussein stated, "Iraq made significant progress that led in 2019 to its removal from the global list of the Task Force on International Financial Action ( FATF ) for countries experiencing strategic shortcomings in anti-money laundering and terrorist financing operations."
He pointed out that "Iraq has taken several measures to strengthen its legal framework, which has led to increased cooperation with its counterparts, and that Iraq has fully participated and worked closely with the Commission since its adoption of the previous regulations mandated by the European Union Commission 1675/2016 in 2016."
According to the statement, Hussein expressed his "astonishment at the justification provided by the committee for its decision on Iraq, and disclosed by saying: Our competent authorities have been working closely over the past two years to provide the necessary and relevant information through official channels on meeting the requirements of the European Union to combat money laundering and the financing of terrorism." ".
He affirmed, "Iraq has met the criteria set by the Financial Action Group ( FATF ), and the standards set forth in the relevant European Union directive 849/2015, and has addressed all the shortcomings and gaps highlighted by the Commission, and has not received any negative response from the Commission until the adoption of the regulations mentioned in May 7 ".
The Minister demanded, "The Commission is transparent, and the need to listen to the clear commitment shown by Iraq to the standards related to combating money laundering and terrorist financing."
He stressed that "Iraq has implemented over the years important laws and procedures aimed at combating money laundering, terrorist financing, and mitigating the risks associated with them. The Financial Action Group ( FATF ) report indicated that preventive measures to combat money laundering and combating the financing of terrorism ( AML / CFT ) In Iraq, it is strong and entrenched. "
He warned that "the Commission's decision, if it is not rejected by the Council of the European Union, will have a detrimental economic and social impact on Iraq, and will affect cooperation with the member states of the European Union under the Association Agreement and Cooperation between Iraq and the European Union."
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