Regulator Name: Central Bank of Iraq (CBI)

Entity Targeted: All financial institutions operating under CBI supervision, and implicitly, the general public and any platforms attempting to facilitate cryptocurrency trading or transactions within Iraq. Penalty Amount: Not a specific fine for the directive itself. Non-compliance by financial institutions could lead to severe regulatory penalties, including fines, license suspension, or revocation. Individuals could face legal prosecution under existing financial crime laws.

Date: Announced in February 2021.

Outcome: All licensed banks, financial institutions, and payment service providers were prohibited from dealing in cryptocurrencies. This established the legal framework making crypto activities illegal in Iraq.

Al-Monitor (February 2021) - "Iraq bans cryptocurrency, citing money laundering concerns"

Re-affirmation and Enhanced Warnings (2023)

Entity Targeted: Financial institutions, payment companies, money transfer agencies, and the general public, with specific warnings against foreign companies operating illicitly within Iraq. Violation Type: Engaging in, promoting, or facilitating cryptocurrency transactions, deemed a breach of Iraqi financial law and a risk to the national economy and financial system. Penalty Amount: Not a specific fine for the re-affirmation. The directive reiterated that any individual or entity found dealing in cryptocurrencies would be subject to legal prosecution, implying criminal charges rather than administrative fines.

Date: Issued a circular to banks and financial institutions in February 2023.

Outcome: Reinforced the existing ban, explicitly stating that using or dealing with cryptocurrencies is against Iraqi law and that violators would face legal consequences. It aimed to shut down any perceived loopholes or illicit operations. This was a significant re-emphasis of the country's hardline stance.

Reuters (February 2023) - "Iraq central bank reiterates crypto ban, warns of legal consequences"

CoinDesk (February 2023) - "Iraq Central Bank Reaffirms Crypto Ban and Warns of Legal Action"

Blanket Ban: Because crypto is outright banned, enforcement tends to fall under broader financial crime or anti-money laundering laws rather than specific crypto-related administrative fines.

Lack of Transparency: Iraqi authorities generally do not publicly disclose details of individual arrests, investigations, or specific financial penalties related to cryptocurrency violations in a systematic or easily accessible manner, especially to international observers.

Focus on Prevention: The primary "enforcement" has been through strong warnings and directives to prevent engagement rather than publicized actions against a large number of violators.

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The Iraqi police system was re-established following the overthrow of Saddam Hussein in 2003. (topic: Re-establishment of Iraqi Police after 2003; quote: "The Iraqi police system was re-established following the overthrow of Saddam Hussein in 2003.") [https://en.wikipedia.org/wiki/Law_enforcement_in_Iraq]

The Jihaz Al-Mukhabarat Al-A'ma (Mukhabarat) was a secret police organization during the administration of Saddam Hussein. (topic: Secret Police under Saddam Hussein; quote: "The Jihaz Al-Mukhabarat Al-A'ma (Mukhabarat) was a secret police organization during the administration of Saddam Hussein.") [https://en.wikipedia.org/wiki/Law_enforcement_in_Iraq]

A new Iraqi Police Service was established in 2003 as a municipal law enforcement agency under the authority of the Ministry of Interior. (topic: Formation of Iraqi Police Service post-2003; quote: "After the previous police force was completely disbanded, in 2003 a new Iraqi Police Service was established to act as a municipal law enforcement agency under the authority of the Ministry of Interior.") [https://en.wikipedia.org/wiki/Law_enforcement_in_Iraq]

The International Police was deployed to Iraq in 2003 to help train, recruit, and field police forces. (topic: International Police Deployment in Iraq; quote: "At this time the International Police was deployed to Iraq. This is a functional organization made up of police officers from all over the world, serving mostly under the direction of the United Nations , to help train, recruit, and field police forces in war torn countries.") [https://en.wikipedia.org/wiki/Law_enforcement_in_Iraq]

In early 2005, a nominal total of 55,000 police officers had been trained, but the training and reliability of this force were under question. (topic: Police Training in Early 2005; quote: "In early 2005, a nominal total of 55,000 police officers had been trained, but the training and reliability of this force were under question.") [https://en.wikipedia.org/wiki/Law_enforcement_in_Iraq]

Starting pay for police personnel was US$60 per month with a hazardous duty allowance of an additional US$87 per month in 2004. (topic: Police Pay Structure in 2004; quote: "In 2004 starting pay for police personnel was US$60 per month, with a hazardous duty allowance of an additional US$87 per month.") [https://en.wikipedia.org/wiki/Law_enforcement_in_Iraq]

The Iraqi National Intelligence Service (INIS) was established in 2004 to gather information on groups threatening national security. (topic: Establishment of INIS in 2004; quote: "The Iraqi National Intelligence Service (INIS) was established in 2004 in cooperation with the U.S. Central Intelligence Agency (CIA) to gather information on groups threatening national security.") [https://en.wikipedia.org/wiki/Law_enforcement_in_Iraq]

The majority of Iraqis believe the most important challenge facing the country is corruption, which is widespread in its institutions. (topic: Perception of Corruption in Iraq; quote: "The majority of Iraqis believe the most important challenge facing the country is corruption, which is widespread in its institutions.") [https://2017-2021.state.gov/bureau-of-international-narcotics-and-law-enforcement-affairs-work-by-country/iraq-summary/]

The Government of Iraq has struggled to achieve progress on political reconciliation and reform, including the devolution of power and authority to provincial and local governments. (topic: Political Reconciliation in Iraq; quote: "The Government of Iraq (GOI) has struggled to achieve progress on political reconciliation and reform, to include the devolution of power and authority to provincial and local governments.") [https://2017-2021.state.gov/bureau-of-international-narcotics-and-law-enforcement-affairs-work-by-country/iraq-summary/]

INL pursued limited law enforcement programming with the Department of Justice’s International Criminal Investigative Training Assistance Program (DOJ/ICITAP) in 2017 to increase capacity within the Iraq Ministry of Interior. (topic: INL DOJ/ICITAP Program in Iraq (2017); quote: "In 2017 INL pursued limited law enforcement programming with the Department of Justice’s International Criminal Investigative Training Assistance Program (DOJ/ICITAP) to deliver a program designed to increase capacity within the Iraq Ministry of Interior in four areas: 1) Crime Scene Management and Forensic Services; 2) Organized Crime Investigations, 3) Internal Affairs; and 4) Specialized Training Management.") [https://2017-2021.state.gov/bureau-of-international-narcotics-and-law-enforcement-affairs-work-by-country/iraq-summary/]

INL partnered with the United Nations Office on Drugs and Crime (UNODC) in 2018 to support a program that strengthens the capacity of Iraqi law enforcement and criminal investigation Services. (topic: INL UNODC Partnership (2018); quote: "In 2018, INL partnered with the United Nations Office on Drugs and Crime (UNODC) to support a program to strengthen the capacity of Iraqi law enforcement and criminal investigation Services.") [https://2017-2021.state.gov/bureau-of-international-narcotics-and-law-enforcement-affairs-work-by-country/iraq-summary/]

The Iraqi Federal Commission of Integrity seized more than $6 million and seven gold bars from the home of Deputy Minister of Electricity for Transport and Distribution Khalid Ghazai Atiya. (topic: Anti-corruption asset seizure in Iraq; quote: "Iraq’s Federal Commission of Integrity announced on Sunday the seizure of more than $6 million, seven gold bars and gold jewelry at the home of the deputy electricity minister for transport and distribution ... The seized funds amounted to 1,175,000,000 Iraqi dinars [$900,000] and 5,839,000 U.S. dollars, in addition to seven gold bars and gold jewelry.") [https://www.rudaw.net/english/categories/iraq/1078854]

Members of the Iraqi Parliament have called for equal enforcement of anti-corruption measures across all provinces and political groups. (topic: Parliamentary calls for equitable anti-corruption enforcement; quote: "Several Iraqi members of parliament have lauded the anti-corruption drive, calling for equal enforcement. Sumaya Al-Khabouri ... called on the government to continue and for these steps to be applied to all, rather than being enforced in one province, against one party or group. Murtada al-Saadi ... raised concerns about some of the procedures.") [https://www.rudaw.net/english/categories/iraq/1078854]

Iraq ranked 136th out of 180 countries in Transparency International's 2025 Corruption Perceptions Index. (topic: Corruption ranking in Transparency International's CPI; quote: "Iraq ranked 136th out of 180 countries in Transparency International's 2025 Corruption Perceptions Index, reflecting continued concerns over corruption and the recovery of public funds.") [https://www.rudaw.net/english/categories/iraq/1078854]

Bureau of International Narcotics and Law Enforcement ...

Iraqi authorities seize $6M, MPs call for equal enforcement

Iraq's regulatory framework for law enforcement is outlined in various statutes and decrees issued by the Iraqi government, including the Law on Combating Money Laundering (Law No. 26 of 2014) and the Decree-Law No. 58 of 2006 concerning the prevention of terrorist financing. Bureau of International Narcotics and Law Enforcement Affairs

The Competition Council has issued a procedural guide on mergers and restrictive practices, enhancing the enforcement of antitrust laws to promote fair competition. Competition Council Issues Procedural Guide on Mergers

Licensing for businesses in Iraq often requires approval from the Iraqi State Regulations Services (ISRS), which ensures compliance with national laws and standards. Iraqi State Regulations Services

Specific industries, such as financial services, may require additional licenses from regulatory bodies like the Central Bank of Iraq and the General Tax Authority. General Tax Authority | IMOF

The Law on Combating Money Laundering mandates that financial institutions implement robust Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures. Bureau of International Narcotics and Law Enforcement Affairs

Financial institutions are required to conduct due diligence on clients, monitor transactions for suspicious activities, and report any suspected money laundering to the relevant authorities. Iraq – KnowYourCountry

Recent enforcement actions include increased scrutiny of financial transactions by the Iraqi State Regulations Services and collaboration with international agencies such as the Financial Action Task Force (FATF) to combat money laundering. Iraq – KnowYourCountry

The Ministry of Interior has launched initiatives to enhance police capabilities in investigating narcotics trafficking and other criminal activities. Law enforcement in Iraq

The General Tax Authority administers various taxes, including corporate income tax, value-added tax (VAT), and customs duties, ensuring compliance through rigorous enforcement mechanisms. General Tax Authority | IMOF

Corporate entities in Iraq are subject to a progressive corporate income tax rate, with additional taxes applicable under specific circumstances such as excessive profit extraction. Iraq - Corporate - Other taxes - Worldwide Tax Summaries

A notable gap in enforcement is the limited capacity of local regulatory bodies to monitor and enforce compliance across all sectors, particularly in remote or conflict-affected regions. Bureau of International Narcotics and Law Enforcement Affairs

Risks include potential non-compliance with international standards due to insufficient resources and training, as well as the proliferation of illicit financial activities facilitated by weak oversight. Iraq – KnowYourCountry

Competition Council Issues Procedural Guide on Mergers

Iraq - Corporate - Other taxes - Worldwide Tax Summaries

Legal Basis: Taxes are levied under federal laws, with specific decrees addressing sector-specific tax obligations. The Personal Income Tax Law and Corporate Income Tax Law are the primary statutes governing taxation.