ERBIL, Kurdistan Region - After Iraq's removal from the European Union (EU)'s list of countries at high risk of money laundering and financing terrorism, the country’s finances are set on a steady path to recovery according to the prime minister’s leading financial advisor who also professed that the country was now “free of money laundering.”
Mazhar Mohammed Salih, the financial advisor to the Iraqi Prime Minister Mustafa al-Kadhimi, stated on Friday morning that Iraq's exclusion from the list will greatly propel Iraq's financial capabilities, encouraging the flow of money into the country.
"The situation regarding our [Iraq's] foreign debt is relaxed and the debt is decreasing, and the debt to be paid does not exceed 20 billion dollars, which is already allocated [in the budget]," Salih told state media on Friday.
He continued by addressing the impact of Islamic State ISIS on Iraq's financial integrity, explaining how "Iraq was infected with significant amounts of money laundering due to the occupation of ISIS, which is a terrorist force and has external financial backing," and adding that Iraq's exclusion from the list of high-risk countries paves the way for banks in Iraq to globalize, operating with a lower cost, which would promote investment and ease the flow of capital into the country.
According to a report published by the Central Bank of Iraq in 2017, ISIS managed to steal over $800 million from Iraqi banks and reserves since its rise in 2014.
Salih also claimed that, "Iraq has proven that it is free of money laundering and has been raised from the list of high risks to natural,” explaining how the EU’s move would benefit “the entry of capital into the country without problems.”
Yet the removal of the country from the EU's list of countries at high risk of money laundering and financing terrorism will also enable the easier transfer of capital out of the country.
Iraq suffers from rampant corruption, with a staggering $150 billion being extracted from the war-torn country since 2003.
The EU added Iraq to its list in 2016.
Last Monday, Iraqi premier Mustafa al-Kadhimi welcomed the removal of Iraq from the list of high-risk countries in a tweet, stating "the decision of the EU to delist Iraq from the list of high risk countries on AML/CTF is a manifestation of our effective diplomatic efforts."
By Julian Bechocha
