Currency Auction as a Source of Money Laundering in Iraq


According to World Bank report 38 million dollars are being laundered from Iraq in the different countries of the world. This is an alarming situation for Iraq and its financial institutions. The auction sales of dollar in central bank of Iraq are considered to be the major source for money laundering in the country.

The experts believe central bank will have to change its method of allow dollars to the different companies taking part in the auction sales. There must be proper criteria to take part in the auction for a company. The corruption in Iraq is the major source to destroy the auction sales in the country. The experts say that the huge amount of money laundering cannot be taken place without internal help.

Some believe the official people of central bank of Iraq are involved in the money laundering. The central bank of Iraq has launched an inquiry against some of the officials within bank. A joint investigation team is also finding facts to know the true facts behind this money laundering in the country. Most of the company buy US dollars from central bank of Iraq more than their actual transactional needs and sell them to the money exchangers in different parts of the country.

Money Laundering In Iraqi History

This procedure is done within minutes by following online sources. The money exchangers them transfer this money to the other parts of the world. This is the only one fact that came in the front of joint action committee. However, the investigation on these companies is being held in next few days. The committee is also responsible to give some suggestions to the central bank of Iraq to make this procedure authentic that could stop this huge money laundering in the country.

The committee suggested that criteria should be defined by central bank of Iraq for these companies to take part in the auction sales of US dollar on daily basis. The central bank need to ask for daily transactional detail of those companies willing to take part in the auction. It can also make a rule to sudden check the transactions of a specific company to know the authentic use of this money. The money laundering should be checked with the iron hands and there should be no any relaxation for a company involved in any illegal activity.

There should be a perfect control over money exchanger activities to avoid any illegal transaction. The experts believe if Iraq could control the financial activities of money exchangers, it will be able to control money laundering in the region. The central bank will introduce new rules for a company to take part in the auction in next few days.

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