Iraq Country Summary
Higher Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Higher Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Higher Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
If you would like a demo of our Subscription area, please reserve a day/time that suits you best using this link, or you may Contact Us for further information.
Anti Money Laundering
FATF Status
Iraq was removed from the FATF List of Countries that have been identified as having strategic AML deficiencies on 29 June 2018.
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Iraq was undertaken in 2024. According to that Evaluation, Iraq was deemed Compliant for 14 and Largely Compliant for 13 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 2 of the Effectiveness ratings.
Sanctions
International sanctions against Iraq include a comprehensive arms embargo and an asset freeze targeting individuals and entities associated with the former Saddam Hussein regime. Additionally, there are specific restrictions on the export of Iraqi cultural property and regulations governing the proceeds from the sale of petroleum and natural gas, which must be deposited into the Development Fund for Iraq.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 26 |
| World Bank: Control of Corruption Percentile Rank | 8 |
Iraq faces significant challenges related to crime and corruption, which are deeply embedded in its political and economic systems. Public corruption is a major barrier to economic development, affecting various sectors including government procurement and customs processing, while criminal activities such as human trafficking, arms smuggling, and drug trafficking are prevalent, often involving organized crime groups and corrupt officials.
Economy
Iraq's economy is experiencing strong growth, driven by significant investments in infrastructure, including the construction of apartment towers, shopping malls, and the modernization of airports and ports. Under the leadership of Prime Minister Mohammed Shiaa al-Sudani, who has emphasized the country's readiness for business, Iraq is actively seeking to strengthen trade ties with both regional neighbors and Western nations, particularly the United States. However, the economy is still heavily reliant on oil exports, with challenges such as bureaucratic inefficiencies, corruption, and security concerns from militia groups impacting the investment climate, despite the potential for lucrative opportunities in various sectors, including energy and agriculture.
Subscribe to
Professional Plus
- Unlimited Access to full Risk Reports
- Full Dataset Download
- API Access
- Virtual Asset Risk Assessments
