Rafidain Bank announced on Tuesday the launch of its new system to combat money laundering and terrorist financing (AML/CFT), marking a significant step in strengthening the country’s financial security.
The bank issued a report detailing the stages of its efforts to combat money laundering and terrorist financing. The measures include improving customer account opening procedures, updating customer information, and implementing monitoring programs to prevent illegal transactions. The bank is also working closely with authorities to identify and report suspicious activities.
The report highlights the bank’s commitment to adhering to international standards for combating money laundering and financing terrorism. It also outlines the bank’s progress in implementing a comprehensive AML/CFT system, which is crucial for detecting and addressing financial crimes.
Key steps taken by the bank include:
- Partnership with Capital B. Solutions Ltd
On December 17, 2023, Rafidain Bank contracted Capital B. Solutions Ltd to acquire a specialized system for detecting money laundering activities by individuals and entities with financial dealings with the bank. The system will comply with the requirements set by the Central Bank of Iraq and the Anti-Money Laundering Unit. Four major programs will be implemented:- Customer Risk Profiling: Analyzing and categorizing the bank’s customers based on risk factors.
- Monitoring Customer Movements: Tracking unusual transactions and auditing activities.
- Suspicious Transaction Reporting: Generating reports to detect and report suspicious transactions, which will be uploaded to the relevant platforms in line with legal and regulatory standards.
- Sanctions Screening: Checking customer names against local and international sanctions lists to ensure compliance with restrictions on certain individuals, organizations, and entities.
- FATCA Compliance: Implementing the FATCA program to ensure US tax compliance among bank customers with US citizenship, addressing tax evasion concerns.
- System Development Stages
The bank has made significant progress in setting up the system. Key milestones include:- Infrastructure Setup: The preparation of the system’s test and production environments, ensuring secure communication channels.
- Risk Classification: Establishing customer risk classification criteria based on factors such as the source of funds, type of service, and customer activity. This allows for the categorization of customers into risk levels ranging from low to very high.
- System Integration: The AML system has been integrated with the bank’s core banking system, allowing secure daily data exchange.
- Training: Staff from the Money Laundering and Counter-Terrorism Reporting Department and the Information Technology Department have been trained on the new system’s technical and operational requirements.
- Current Phase – User Acceptance Testing (UAT):
The bank is currently in the User Acceptance Testing (UAT) phase of the system, where the system is being reviewed and validated for full implementation.
These steps represent a major advancement in Rafidain Bank’s commitment to ensuring a secure and compliant financial environment in line with international standards.
