Baghdad: The Union of Arab Banks affirmed that supporting Iraqi banking institutions is a top priority through developing strategies or facilitating dialogue with international partners, within the framework of applicable international laws and regulations.
According to National Iraqi News Agency, the Secretary-General of the Union of Arab Banks, Wissam Fattouh, stated at the Anti-Money Laundering and Combating the Financing of Terrorism Conference in Baghdad that combating money laundering and terrorism financing, along with fighting corruption, has become central to the global agenda. These efforts are crucial indicators of the credibility of financial institutions and their countries before the international community and banks.
Fattouh highlighted that the Arab region faces complex challenges, stemming from political and security tensions, as well as regulatory and technical issues in several banking sectors. The situation is exacerbated by the strict application of digital standards by international entities, which do not always consider the specific circumstances of individual countries.
He emphasized that compliance is not merely a technical issue but a matter of sovereignty, institutional integrity, and economic stability. Failing to comply could jeopardize relationships with international banks, affecting the ability to conduct essential financial operations. This, in turn, impacts investment flows, aid, and trade cooperation. He called for strengthened cooperation between Iraqi banks and the Union of Arab Banks to navigate the complex political and economic environment effectively.
Fattouh also underscored the importance of integrating financial technology into internal control systems, including using artificial intelligence for compliance and risk assessment. He advocated for a culture of compliance at all organizational levels, from board members to front-line employees.
He concluded by stressing that the current challenges demand cooperation, a reevaluation of priorities, and ongoing efforts in banking reform.