28-05-2025
PFC: Bringing Iraqi banks into the international system is essential for their development
Baghdad - INA
Parliamentary Finance Committee Chairman Atwan Al-Atwani stressed on Wednesday that compliance with international standards and banks' integration into the international system is a national necessity to protect the financial system and a prerequisite for developing the banking environment.
During his speech at the second session of the Anti-Money Laundering and Combating the Financing of Terrorism Conference, attended by an Iraqi News Agency (INA) correspondent, Al-Atwani said: "At the beginning of my speech, I would like to express my welcome to the convening of this distinguished conference, which comes at a very important time, given the fundamental transformations and increasing challenges the financial and banking sector is witnessing at the local, regional, and international levels. These transformations require the highest levels of coordination and cooperation from all of us, legislative, executive, and oversight institutions." He added, "International regulatory obligations imposed on financial institutions, particularly those related to combating money laundering and terrorist financing, have become among the most prominent requirements affecting the nature of the relationship between local banks and their global counterparts. Meeting these requirements is a prerequisite for developing a safe and stable banking environment capable of interacting positively with the global financial system."
He continued, "Iraq's engagement, represented by its national banks, in this international regulatory environment is not an option, but rather a national necessity to protect the financial system from cross-border risks and to ensure the continued flow of investment and capital, which directly contributes to supporting economic and social development efforts and enhancing confidence in the national economy."
Al-Atwani noted in his speech, "Iraq has made significant strides in this direction over the past few years. The Iraqi banking system has witnessed significant developments, represented by the modernization of the legal and regulatory structure, the issuance of instructions related to compliance and tightening oversight, and the development of qualified banking cadres capable of dealing with these changes." He added, "We have witnessed the Central Bank of Iraq's commitment to adopting a reform and development approach by imposing precise and updated instructions in line with international best practices, along with its relentless pursuit of enhancing transparency and strengthening the anti-money laundering and counter-terrorism financing system."
He continued, "Despite these commendable efforts, challenges remain, especially in light of growing regulatory complexities and the increasing requirements of correspondent banks, along with their precise and changing conditions.
Here, the need for concerted efforts by all stakeholders, including banks, regulatory, legislative, and security authorities, is growing to address these challenges responsibly and professionally."
He noted, "Hence, the importance of this conference, which constitutes an important platform for exchanging expertise, reviewing the latest developments in international legislation, and highlighting the experiences of other countries in this field, particularly with regard to modern compliance techniques, best practices for internal control, and risk management."
He added, "We also affirm, from our position in the Parliamentary Finance Committee, our full support for all efforts aimed at developing the Iraqi banking sector, and our commitment to following up on the legislation required to enhance Iraq's compliance with international standards, while emphasizing the need to strike a balance between strict compliance, achieving economic growth goals, supporting the private sector, and facilitating investment."
