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Preface The financial and administrative corruption and money laundering are organized crimes that have a negative effect on the community’s, economic,

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Presentation on theme: "Preface The financial and administrative corruption and money laundering are organized crimes that have a negative effect on the community’s, economic,"— Presentation transcript:


2 Preface The financial and administrative corruption and money laundering are organized crimes that have a negative effect on the community’s, economic, social and security aspects. In addition to being one of the cross-border crime and international terrorism that threatens the stability of societies and their security. this not easy to control without unifying the international efforts and cooperation to make the combating effective. Therefore, Iraq has start to face these crimes seriously through: Establishing Intelligence Office for combating money laundering in the CBI under Article (12) of the Anti-Money Laundering No. 93 of 2004. This act of law formed to collect information on financial transactions that are subject to financial monitoring, reporting financial data, processing such information, analysis and dissemination to secure the financial institutions and the implementation of the Iraqi policy to prevent money laundering and the financing of crimes and terrorism.

3 Establishing the Joint Council for fighting corruption, headed by the Secretary General of the Ministers council and the membership of the heads of (Council of higher Judicial, BSA, the Commission of Integrity) and the Prime Minister coordinator for the controlling and representative of the inspectors general. The council goal is the coordination among anti-corruption agencies represented in this Council, ensure the distribution of roles among them, activation for their efforts, making recommendations and proposals on legislations, procedures and appropriate regulations to build a strong front to face the grave phenomena of corruption and different challenges. Issuance of combating money laundering law No. 93 for the year 2004 in addition to the adopted laws such as Penal Code No. 111 of 1969 The national strategy has initiated for the fight against corruption for the years 2010-2014, it aims to reduce the phenomena of corruption through:

4 Prevention: build a legal and judicial system to be able to achieve effective deter measures. Deterrence: building a wide national system to involve both official and public institutions Create a wide national front, involving both official and public institutions Reform from top to bottom of political and executive hierarchy, starting from the top to the lowest levels of the Executive.

5 The BSA has played prominent and effective role in the fight against corruption and money laundering, building on BSA awareness of the fact that effective deterrence of terrorism, crime and fraud requires strong controls against illegal acts. Among BSA practices to fight against these tow phenomena, are the following: 1. FBSA an active member of the Joint Council for the fight against corruption, which has formed in 2007 2. Participation in the development of the national strategy of anti-corruption for years (2010-2014), which responds to the United Nations Convention Against Corruption, that we joined in 2007 to serve as a comprehensive, detailed plan and guide to combat corruption at all levels 3. Extraordinary efforts by auditors in various activities of government departments, including contracts and referral procedures and implementation 4. Contribute with other regulatory authorities, which is (Commission of Integrity, inspectors general offices) to refer reports that include indicators of corruption for the purposes of verification and investigation 5. Developing a questionnaire for corruption indicators in Iraq and holding a broad conference during which a national indicators of corruption in Iraq were developed, as well as measuring citizen awareness of administrative corruption and money laundering.

6 Questionnaire: evaluation of current situation of money laundering Content of question in the questionnaireAnswer how serious is the situation of money laundering Serious Money laundering is increasingPartially agree money laundering tends to be more sophisticated Partially agree main pattern of money launderingBoth in public and private entities fields that’s have the highest risk of money laundering Finance, banking the most common method of money launderingCash transaction Favorite environments for money laundering Use of cash and illegal money transfer is dominant offences closely associated with money laundering Corruption

7 Content of question in the questionnaireAnswer main reason criminals launder money  Becoming legitimate  Hiding illegally accumulated wealth  Increase profit consequences of money laundering  consequences of money laundering  Weakened financial institutions  Negative impact on foreign investment economic and social consequences caused by money laundering Very serious Impact of money laundering on national security Serious

8 Conclusions Through studying and analyzing the answers of questionnaire, we have reached number of conclusions: 1- The process of money laundering have a serious impact on the country’s economic, social political aspects, which effect and influenced by those factors as big it was, but the general impression that money laundering increasing the more technology evolved, increased of business volume and economic openness. 2- Financials and banking sectors are the most vulnerable to money laundering, taking into consideration that’s other business patterns are also exposed to money laundering but to a lower extent. Moreover the most prevalence types of money laundering are remittances, which intended to give laundered money legitimacy. 3- There are a number of reasons to commit money laundering, mainly the following: Give legitimacy to the laundered money. Hide the illegal wealth Increase profits These reasons continue to increase and the importance of those reasons varies depending on technology developments and the evolution of business.

9 Is obvious to everyone that the increase in crimes generates a negative impact on society, therefore money laundering will generates a number of consequences, which includes: Increase crimes and corruption Weaken financial institutions Negative impact on foreign investments These consequences are very important and have a negative impact on society, therefore we needs to develop solutions to avoid it by using (risk management) or minimize their effects if they occur (Crisis Management). On the other hand, that money may be used to finance terrorist activities which will affect the national security.

10 Questionnaire: evaluation of current situation of corruption Content of question in the questionnaireAnswer prevalence of corruption Moderate and widespread among some public sectors prevalence of corruption compared with previous years Slightly lower than previously Transparency International’s-Corruption Perception Index fairly reflects the reality of corruption No country’s score of the Global Integrity Index fairly reflects the reality of corruption No tolerance level of people toward corruptionStrongly intolerant towards corruption strength of steps taken by government against corruption Higher than moderate pattern of corruption dealingsHighly predictable types of corruption most prevalencePetty corruption

11 Content of question in the questionnaireAnswer prevalence of petty corruptionHigh Who involved in petty corruptionMedium Management, Rank and file employees Who involved in grand corruption Powerful government officials Business entrepreneurs most common types of corruptionBribery sectors most vulnerable to corruptionCustoms The probability of occurring corruptionProcurement contracts Monies and assets gained from corruption most often used as… Bank deposits root cause of corruption Complicated and cumbersome administrative procedures “Weak accounting practices, including lack of timely financial management are conditions favorable for corruption.” Agree Prioritizing monitoring the situation of corruption High priority

12 Content of question in the questionnaireAnswer prioritizing complaints of corruption or fraud from the public High priority emphasizing the importance role of whistle blower in reporting of corruption Very important Is whistle blowing an effective avenue to lodge complaints of corruption Effective how much damage does corruption cause to the government’s budget Very serious how much damage does corruption cause to the private sector? Serious

13 Conclusions Through interpretative analysis of the answers, we have reached the following conclusions: 1. The corruption is moderate widespread among public sectors, but its prevalence start to decrease compared with the previous years, because of increase citizen’s awareness of corruption, their intolerance toward corruption as well as enacting laws and establishing anti corruption committees; which have an active role decreasing this phenomenon. 2. Petty corruption is widespread in my country, especially in the medium management and supervisors. 3. Government high officials are involved with grand corruption and the most common type is bribery. 4. The most vulnerable sector to corruption is customs and the most vulnerable activities to corruption are procurement contracts. 5. Corruption monies are mostly used as a bank deposits.

14 6. The main cause of corruption in my country is complicated administrative procedures; which considered point of weakness in the internal control system of the institutions that are exposed to corruption, as well as weak accounting practices by these institutions will increase motivate corrupters in that institution. 7. The complaints on corruption will have priority in the SAI’s work after verifying the information to be included in the audit work. 8. The corruption has a serious damage on all social levels and in private and public sector.

15 Thanks for your attention

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