Iraq’s Integrity Commission announced the launch of a review of government contracts and the pursuit of individuals implicated in corruption cases. The government also agreed to cooperate with an international anti-money laundering body, leading experts to suggest that “a long-delayed confrontation with influential political forces may be drawing near.”
The measures come two days after Prime Minister Ali Al-Zaidi carried out an administrative reshuffle affecting financial and security agencies, as well as the governor of the Central Bank of Iraq.
In remarks carried by the state news agency on Saturday, Integrity Commission Chairman Mohammed Ali Al-Lami stressed the need to scrutinize government contracts, expedite investigations, and adhere to the highest professional standards in reviewing cases.
The goal was to identify shortcomings and negligence, safeguard state rights, and ultimately refer cases to the judiciary, he said.
Mahmoud Dagher, a former Central Bank of Iraq official, described the current government’s approach as “somewhat bold” in dealing with corruption, which he called one of Iraq’s most complex challenges since 2003 because of the powerful interests involved and their deep entrenchment within state institutions.
Speaking to Asharq Al-Awsat, Dagher said the measures could “provoke the political class,” predicting “a confrontation that has long been postponed between Al-Zaidi and a number of political actors.”
The Integrity Commission had already begun, in late May, forming specialized teams under the direct supervision of its leadership to conduct comprehensive audits and investigations into several major government contracts. The objective is to verify their compliance with the law and present the findings before the courts.
Money laundering
In a related development, a US administration official said Iraq had begun cooperating on anti-money laundering efforts following a nearly two-year review of the country’s framework for combating money laundering and terrorist financing.
The official said Iraq had agreed to work cooperatively with the Financial Action Task Force (FATF) to address the most significant strategic deficiencies in its anti-money laundering and counterterrorism financing regime.
In a statement, the official stressed that Iraq was demonstrating political will to comply with FATF standards and encouraged Baghdad to maintain its positive momentum and accelerate implementation of the FATF action plan.
Dagher said Iraq remains on the FATF’s grey list for money laundering concerns but has submitted a reform and corrective action program that was accepted by the international body and is currently being implemented.
He added that, by agreeing for the first time to cooperate with an international organization specializing in anti-money laundering oversight, “the Iraqi government has entered a hornet’s nest.”
Dagher explained Iraq was on the FATF grey list before 2018 but was later removed after intensive efforts by its Central Bank.
The country was moved to the “white list,” meaning financial institutions no longer needed to subject transactions involving Iraq to heightened scrutiny, unlike countries that remain on the grey list and face additional review requirements.
The developments come amid media reports that Al-Zaidi’s ongoing reshuffle could affect more than 100 officials across ministries, government departments, and public agencies, regardless of their political or partisan affiliations.
The changes introduced in key security and economic positions have raised questions about the message the prime minister is seeking to send and whether they are a response to external considerations linked to his visit to the United States next month.
