Baghdad-INA
Early anti-corruption measures launched by the government of Prime Minister Ali Falih Al-Zaidi have marked a notable step in administrative and financial reform efforts, after an attempt to seize around 1.5 trillion Iraqi dinars from the Rasheed and Rafidain banks was foiled, in what was described as one of the largest recent anti-corruption operations.
The move is being presented as sending reassurance signals to local and foreign investors regarding the protection of funds and rights within Iraqi financial institutions, strengthening prospects for attracting new investment and supporting efforts to open the Iraqi market to regional and international projects.
It also contributes to reinforcing confidence in the government by demonstrating political will and oversight mechanisms capable of confronting corruption within state institutions, consolidating perceptions of a more decisive phase in tackling waste and manipulation of public funds.
Legal expert Haider Al-Dhalimi said the practical measures taken by the new Iraqi government under Al-Zaidi in combating financial and administrative corruption represent a clear indication of genuine will to protect public funds and enhance financial and economic stability in the country.
Al-Dhalimi told the Iraqi News Agency (INA): “The meetings and discussions held by the government, alongside statements supporting the work of the Board of Supreme Audit and the Integrity Commission, have been translated into practical steps aimed at combating financial and administrative corruption, money laundering, and terrorism financing,” noting that “many cases of financial corruption in some institutions and banks are linked to money laundering operations that may have extensions inside and outside Iraq.”
He added that “Iraq is facing economic and financial challenges due to regional and international conditions, as well as the impact of declining crude oil exports on state revenues, which requires tightening oversight over public funds and strengthening anti-corruption tools to ensure the protection of state financial resources.”
He pointed out that “thwarting an attempt to seize 1.5 trillion dinars carries important messages to all state institutions, and confirms that the government is seriously continuing to support oversight bodies and enable them to carry out their duties in pursuing those involved in corruption cases, and will not tolerate any party or person attempting to exploit influence, relationships, or administrative loopholes to harm public funds.”
Al-Dhalimi said that “these measures send a clear message that the state will take all legal actions against anyone proven to be involved in manipulating public funds, whether they have governmental, political, or external affiliations,” stressing that “the protection of public funds represents a national priority that cannot be compromised.”
He added that “this step is not limited to its domestic implications, but also has positive repercussions internationally by strengthening the confidence of international financial and oversight institutions in Iraq’s anti-corruption, anti-money laundering, and counter-terrorism financing measures, and contributes to enhancing economic and financial partnerships between Iraq and other countries.”
He stressed that “the success of these efforts represents an important start in the path of financial and administrative reform, and provides a positive indicator of the state’s seriousness in confronting crimes that threaten the national economy and affect Iraq’s financial reputation,” underlining that “continued support for oversight and judicial institutions will enhance opportunities to reduce corruption, protect public funds, and achieve economic development.”
Economic expert Mustafa Akram Hantoush also said that files revealed by the Integrity Commission regarding the issuance of forged cheques and the seizure of properties represent an important step in combating corruption and strengthening confidence in government procedures.
Hantoush told the Iraqi News Agency (INA) that “the issue of funds deposited in state banks, particularly Rafidain and Rasheed banks, is not new,” noting that “there are large sums belonging to deceased individuals, travellers, or account holders who have not followed up on their accounts for many years.”
He added that “procedures for transferring these funds to the public treasury may in some cases take between 10 and 15 years, which makes them vulnerable to attempted seizure through obtaining personal data and exploiting applicable laws and regulations.”
He explained that “the Iraqi banking system needs further development and the continuation of reform programmes,” noting that “the measures taken by the Integrity Commission will contribute to strengthening confidence in the Iraqi government headed by Ali Al-Zaidi and support its efforts in combating corruption.”
He pointed out that “focusing on protecting public funds and closing legal and administrative loopholes that may be exploited in corruption cases will prevent the recurrence of similar cases to what was known as the ‘theft of the century’,” adding that “there are funds in various institutions and entities that require greater legal and procedural protection.”
Hantoush stressed that “tightening oversight and follow-up on these files, alongside developing legislation and instructions related to the protection of public funds, will give a positive impression of government performance and will also positively reflect on international governance indicators and ratings.”
Meanwhile, anti-corruption expert Saeed Mousa said that thwarting an attempt to seize more than 1.5 trillion Iraqi dinars represents an important success for proactive oversight work and joint coordination between relevant bodies responsible for protecting public funds.
Mousa told the Iraqi News Agency (INA): “The rapid and pre-emptive cooperation between Rafidain and Rasheed banks, the Integrity Commission, and the competent investigative court contributed to taking urgent preventive measures that prevented the theft and seizure of these funds,” noting that “this reflects advancement in financial oversight and monitoring mechanisms.”
He added that “this operation represents an indicator of a genuine will to strengthen integrity and combat corruption within the government programme,” stressing that “the success of these efforts requires support from the Council of Representatives through enacting relevant legislation, as well as continued cooperation between the executive authority, oversight bodies, and the judiciary.”
He explained that “the development of oversight work within state-owned banks, particularly Rafidain and Rasheed banks, has strengthened the ability of financial institutions to monitor money flows and protect depositors’ funds and public money, which contributes to enhancing citizens’ confidence in the government banking sector.”
He noted that “the speed of judicial response and the adoption of necessary legal procedures enabled the Integrity Commission to perform its role efficiently in exposing and foiling the attempt and arresting the accused,” adding that “investigations are still ongoing to uncover all those involved, whether inside the relevant institutions or outside them.”
Mousa stressed “the importance of providing legal protection for oversight bodies and enabling them to carry out their duties,” calling for “developing audit and control systems and adopting international standards in financial oversight, in line with global best practices in public fund management and anti-corruption.”
He urged “the enactment of a government procurement and contracts law in accordance with international standards, ensuring transparency in contract announcements, company qualification, project supervision, and accountability for negligence,” noting that “strengthening integrity requires integration of roles between the executive authority, oversight bodies, and the judiciary.”
He also highlighted “the importance of updating the legislative framework, including the adoption of a new penal code that keeps pace with current challenges and enhances the judiciary’s ability to combat corruption and enforce the rule of law, alongside supporting the media, enacting a freedom of information law, and strengthening community oversight through civil society organizations.”
He said that “the private sector is a key partner in anti-corruption efforts through adherence to integrity, transparency, and performance standards, with the need to provide a safe environment for companies and protect them from extortion and undue influence,” noting that “the integration of these efforts would contribute to better management of public resources, increased non-oil revenues, sound financial governance, improved public services, and enhanced Iraq’s economic standing at both regional and international levels.”
Legal researcher Ali Al-Tamimi said that Iraq’s Anti-Money Laundering and Terrorism Financing Law No. (39) of 2015 represents an important shift in criminal policy from punishment after the crime to prevention and early detection, noting that the foiled attempt to seize hundreds of billions of dinars in Rafidain Bank is a practical example of the effectiveness of proactive oversight mechanisms.
He told the Iraqi News Agency (INA) that “the law obliges financial and non-financial institutions with a set of regulatory duties that make them the first line of defense against money laundering and terrorism financing crimes, foremost among them applying the ‘Know Your Customer’ principle, verifying client identities and sources of funds, and prohibiting anonymous or pseudonymous accounts.”
He added that “the law requires keeping financial transaction records and documents for no less than five years, enabling competent authorities to track money flows and investigate sources when needed, in addition to obliging institutions to report suspicious transactions immediately to the Anti-Money Laundering and Terrorism Financing Office at the Central Bank of Iraq.”
He explained that “the legislation also requires reporting large cash transactions according to specified controls, appointing compliance officers to oversee anti-money laundering procedures, and adopting internal policies to assess risks and enhance monitoring of high-risk clients and transactions.”
Al-Tamimi noted that “the law imposes strict penalties on money laundering offenders, including imprisonment ranging from seven to fifteen years, in addition to financial fines that may reach up to three times the value of the proceeds of the crime, as well as confiscation of funds and proceeds in favour of the state treasury.”
He pointed out that “the law also penalises individuals or entities that fail to report suspicious transactions or tip off clients about reports filed against them, and establishes legal responsibility for legal persons and institutions involved through financial penalties and possible administrative measures.”
He said that “the law has achieved important positive results, including expanding oversight to include the financial sector and related institutions, enhancing international confidence in the Iraqi banking system, and supporting Iraq’s compliance with international standards on combating money laundering and terrorism financing.”
He stressed that “enhancing the effectiveness of the law requires developing the capacity of specialised staff, improving the quality of financial reporting, expanding oversight to non-financial sectors, and accelerating litigation and asset recovery procedures to protect the national economy and public funds from organised financial crimes.”
He concluded that “recent experiences in foiling attempts to seize public funds confirm the importance of building an integrated oversight system based on prevention and early detection, which strengthens confidence in the Iraqi financial sector and protects national resources from corruption and crime risks.”
