EU Removes Iraq From List of High-Risk Money Laundering Countries

Iraq has been de-listed from the EU’s list of high-risk countries for money laundering and terror financing, assisting the Arab country in improving foreign trade and investment.

The Prime Minister, Mustafa Al Kadhimi, was pleased with the decision, saying it was “an important step in dedicating effective Iraqi diplomacy to serving the interests of the country”.

“Governmental and diplomatic efforts are continuing at various levels to serve our national interest and achieve Iraq’s deserved status,” he said.

Since Iraq was added to the list six years ago, officials in Baghdad have been constantly trying to urge the EU to remove it from the list. In 2019, the EU stated that Baghdad’s anti-money laundering and counter-terrorism financing laws had “strategic deficiencies”.

On Sunday, 9 January, the EU’s ambassador to Iraq, Ville Varjola, told Mr. Al Kadhimi about the “good news” in a meeting. Mr. Varjola said that the de-listing of Iraq from the list of high-risk countries “will pave the way for deepening financial cooperation and investment”.

Although Mr. Varjola did not specify the reasons for the de-listing, the EU’s criteria for high-risk jurisdictions include failure to impose penalties for money laundering, failure to report suspicious transactions, including terrorism financing or obscuring corrupt payments, and a failure to impose sanctions.

The Foreign Ministry of Iraq stated that the move will pave the way for “economic partnerships that push the wheel of reconstruction and investment.”

“Iraq’s exit from the list of high-risk countries represents an important success for Iraqi diplomacy, especially for state institutions that are concerned with Iraq’s compliance with the standards of international law,” Ahmed Al Sahah, Foreign Ministry spokesman told The National.

“Terrorism and the financing of terrorism is an international challenge, and for Iraq to succeed in complying with the criteria of this regulation reflects the confidence of the international community in the Iraqi government.”

“The success we have achieved together with the contribution of Europe should encourage cooperation in order to provide a bright economic future for our generations.”

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