The Phenomenon of Money Laundering and Its Impact on Economic Growth in Iraq

Abstract

The purpose of this study is to assess the impact of money laundering on banking activities in Iraq by using the descriptive method to describe the money laundering problem and its effect on the Iraqi economy, specifically its impact on the economy and the banking sector. After that, we discussed the most recent steps taken into consideration by the government of Iraq to overcome this issue. The data in this study is based on secondary data collected from the annual reports of the Central Banks of Iraq (CBI) during (2021-2022). The collated data were statistically analyzed through the SPSS method. The results show that money laundering has a significant and negative impact on the Iraqi economy and causes structural damages to local currency in short- and long-term periods. Finally, the study recommends that serious government actions must be taken to overcome money laundering in Iraq and the banking sector in particular.