<p><strong>Who are the people whose money is subject to legal  accountability?</strong></p>
<ol>
<li>Each person managing or trying to manage financial transactions and  employing its revenues for use in illegal activity; or all those responsible for  transferring or sending cash and financial means to an entity or a person  knowing that it will be used to support or finance illegal activities.  Furthermore, each person with the intention to execute the illegal activity, or  take advantage of it, or protect those who manage this activity from  prosecution, are subject to legal accountability.</li>
<li>Each person responsible for covering up or concealing the location, source,  ownership or control of the proceeds of the illegal activity in these two  paragraphs shall be: <br />a)&nbsp;Either fined an amount not more than 40 million  Iraqi dinars, or double the value of the money used, whichever is more; or  <br />b)&nbsp;Shall be given a prison sentence of 4 years. <br />Furthermore, it is  possible to give the aforementioned person both the fine, as well as the prison  sentence.</li>
<li>Any person responsible for providing the money, or hiding or covering up for  the money knowing that it is being used in violation of the law.</li>
<li>Any person responsible for providing support to a terrorist group or working  on the shipment of the armed conflict, restricting or intimidating the public or  an international or governmental organization shall be fined 20 million Iraqi  Dinars, or given a prison sentence for a period not exceeding two years; or  both.</li>
</ol>
<p><br />The Central Bank has the right to conduct audits of the financial  institutions it is responsible for by watching for any suspicious financial  activity subject to money laundering or financial crime.<br /><br /><strong>What are  the punitive measures taken against financial institutions that violate the laws  against money laundering?</strong></p>
<ol>
<li>According to Article (9) (the "Act") of the Money Laundering Law of 2004  (the "Law") entitled to issue an order to cease the activity resulting in the  violation;</li>
<li>Assess a monetary penalty under the provisions of the Central Bank of Iraq  Law to the violating institution, or any person engaged in or participating in  activity violating this Act;</li>
<li>Publish the results of any enforcement action, including the name(s) of any  persons involved;</li>
<li>Issue an order that a person found to have violated this Law or participated  in a violation of this Law shall not be permitted to be involved in the affairs  of a financial institution either permanently or temporarily;</li>
<li>Withdraw authorization to act as financial institutions, if the institutions  themselves or persons responsible for administering or managing their business  are found to have seriously or repeatedly violated their obligations under this  Act.</li>
</ol>
<p><br /><strong>Money Laundering Reporting Office </strong></p>
<p>The money laundering reporting office was created in accordance with Article  (12) of the Law; and even though it is affiliated with the Central Bank of Iraq,  it is independent in its line of work and has its own duties and  responsibilities. Some of these duties include the following:<br /><br />a)&nbsp;To  collect, process, analyze and disseminate the financial transactions subject to  financial control and reporting.<br />b)&nbsp;Participate in implementing Iraqi policy  on preventing money laundering, financing of crime, and financing of  terrorism;<br />c)&nbsp;Cooperate and interact with and exchange information with Iraqi  state authorities, competent bodies of other countries and international  organizations on money laundering, financing of crime, and financing of  terrorism;<br />d)&nbsp;Represent Iraq, according to the established procedure, in  international organizations dealing with preventing money laundering, financing  of crime, and financing of terrorism according to the established procedure, in  international organizations dealing with preventing money laundering, financing  of crime, and financing of terrorism.<br /><br />In accordance with Article 14 of  the Law, the Central Bank and Anti Money Laundering reporting office may request  foreign authorities responsible for supervision of financial institutions or  markets, foreign financial intelligence units, or criminal or judicial  prosecution authorities, to provide them with information and documents required  for the performance of their duties. The CBI and the Reporting Office may share  with such foreign authorities as are prepared to provide reciprocal services to  the CBI and Reporting Office, information and documents, including nonpublic  information and documents, within their discretion, related to or gathered  pursuant to this Act, for the purpose of preventing money laundering or the  commission of crime, including but not limited to terrorist  financing.<br /><br />Further, Article 21 of the Law provides that the CBI and the  Reporting Office retains the right to request all persons to report the  transport currency or other monetary instruments greater than 15 million Iraqi  dinars from a place within Iraq to a place outside Iraq, or from a place outside  Iraq to a place within Iraq. It then goes on to mention that the law requires  that a person report the following when transferring money outside  Iraq:<br /><br />a)&nbsp;The legal capacity in which the person filing the report is  acting;<br />b)&nbsp;The origin, destination, and route of the currency and/or monetary  instruments;<br />c)&nbsp;The amount and kind of monetary instruments and/or currency  transported;<br />d)&nbsp;Other additional information as required.</p>
<p><strong>Conclusion</strong><br /><br />Money laundering poses significant concern  to governmental agencies and international bodies alike. The CBI, aware of the  difficulties faced in countering the same, particularly given the economic and  security environment on ground, has introduced a number of measures which have  helped to mitigate this phenomenon, and ensure greater transparency in  transactions.</p>