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Iraq investigates private banks for money laundering

88% of private banks in Iraq are under investigation on charges of money laundering, which have become rampant in the country in the absence of efficient audits by the Central Bank.
A man uses an ATM machine at a bank in Baghdad March 4, 2012. The lack of efficient banking is holding the country back as it rebuilds its economy after the underinvestment of the Saddam Hussein years and the turmoil that followed the 2003 U.S.-led invasion. Without banks that are integrated into the global financial system, foreign investors outside the oil sector are likely to continue hesitating to commit large sums to Iraq. Picture taken March 4, 2012. To match Feature IRAQ-BANKING/      REUTERS/Mohamme
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A prominent economic official in the Iraqi government, who preferred to remain anonymous, said in an interview with Al-Monitor that out of the 33 private Iraqi banks operating in the country, 29 were under investigation on charges of corruption and money laundering.

According to an article published Oct. 16 and based on the report issued by Special Inspector General for Iraq Reconstruction Stuart Bowen, money laundering through the Central Bank of Iraq has resulted in the loss of over $100 billion in the past 10 years, most of which was transferred into banks in Dubai and Beirut.

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