Identification of higher risk currency exchange houses in Daesh-accessible territory in Iraq

FINTRAC-2016-OA004
December 21, 2016

Identification of higher risk currency exchange houses in Daesh-accessible territory in Iraq (PDF version, 303 KB)

Operational Alerts provide up-to-date indicators of suspicious financial transactions and high-risk factors related to specific methods of money laundering and terrorist activity financing that are important either because they represent new methods, re-emerging methods or long-standing methods that present a particular challenge.

Background

The purpose of this Operational Alert is to provide Canadian reporting entities subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) with specific insights into a particular terrorist financing risk area related to the terrorist organization called Daesh.Footnote 1 The risk factors identified in this Operational Alert are primarily related to high-risk geography, and financial transaction services and delivery channels that connect with those areas.

In December 2015, FINTRAC issued an advisoryFootnote 2 that emphasized statements by the Financial Action Task Force related to terrorist financing risks associated with Daesh. FINTRAC's advisories on Daesh terrorist financing risks highlight financial transactions (or attempted financial transactions) emanating from or destined to territories under Daesh's control, and neighbouring jurisdictions accessible, as high-risk.Footnote 3

Identification of higher risk Iraqi financial intermediaries

The entities in Appendix A which have been flagged as higher risk foreign financial intermediaries were identified through the actions of the Government of Iraq, as part of its ongoing counter-Daesh finance activities. In December 2015, the Central Bank of Iraq took measures to reduce risks of Daesh exploiting the Iraqi financial system. These measures helped to reduce the number of revenue generating opportunities that had been available to Daesh.Footnote 4 The Central Bank of Iraq did this by banning over 120 Iraqi currency exchanges (that were within or proximate to areas of Daesh territorial control) from participating in "currency auctions"Footnote 5 that are managed by the bank. This ban was intended to prevent Iraqi exchange houses that operate in areas of Daesh control from gaining access to US dollars due to concerns that Daesh imposes a transaction fee on currency exchange house transactions that take place within their areas of control. In March 2016, the Central Bank of Iraq published an English version of the list of currency exchanges that had been banned from its currency auctions (the list had previously only been available in Arabic).Footnote 6 In June 2017, the Central Bank of Iraq published an updated list to include additional currency exchange houses banned from its currency auctions. This listFootnote 7 is the basis for this Operational Alert and is reproduced in Appendix A. As the Central Bank of Iraq may update this list on an ongoing basis, please refer to the Central Bank of Iraq’s websiteFootnote 8 for the most recent and updated list of banned currency exchange houses.

Operational guidance

This Operational Alert provides specific guidance to Canadian reporting entities about named foreign financial entities (noted in Appendix A) through which the Canadian financial system could be exposed to Daesh-related terrorist financing. These foreign entities should be considered high-risk by reporting entities. These businesses should file suspicious transaction reports or attempted suspicious transaction reports where entities set out in Appendix A are party to transactions that reporting entities process and where they have reasonable grounds to suspect it relates to terrorism financing.Footnote 9

In addition to public advisory information from FINTRACFootnote 10 and the Office of the Superintendent of Financial InstitutionsFootnote 11 about risks associated with financial transactions or attempted financial transactions emanating from, or destined to, the jurisdictions under Daesh control and the surrounding jurisdictions, FINTRAC has also provided information to reporting entities that they should consider when attempting to identify terrorist financing-related suspicious transactions or terrorist property.

FINTRAC is reiterating this guidance with respect to the entities noted in Appendix A for transactions that have taken place since Daesh's territorial expansion in June 2014. Reporting entities are to undertake enhanced customer due diligence with respect to clients involved in financial transactions or attempted financial transactions involving any entity noted in Appendix A.

FINTRAC is reminding all reporting entities subject to the PCMLTFA and its associated Regulations, of their obligationsFootnote 12 to submit a suspicious transaction report or attempted suspicious transaction report if there are reasonable grounds to suspect that a transaction or attempted transaction is related to a terrorist activity financing (or a money laundering) offenceFootnote 13.

Under the Canadian Criminal Code, Daesh is a listed terrorist entity.Footnote 14 In this context, FINTRAC is also reminding all reporting entities subject to the PCMLTFA and its associated Regulations, of their obligationsFootnote 15 to submit a terrorist property report to FINTRAC, without delay, if:

Contact us

Please use "Operational Alert" with the reference number in the subject heading of your communications with FINTRAC, and in any related STR/TPR reporting to FINTRAC:

Appendix A

Iraqi currency exchanges banned by the Central Bank of Iraq from its US dollars currency auctions
(organized alphabetically by name)
Iraqi Exchange Company Name (English) Iraqi ProvinceFootnote 17 Iraqi City Iraqi Address in English
Afaq Al Moelam Anbar Al Qa'im Anbar / Al Qa'im / near Al Qa'im Al Kabir Mosque
Afaq Al-Mustaqbal Nineveh Mosul Nineveh / Mosul / Mosul University / near Ahmed Ismaeel mosque
Al Ahram Nineveh Mosul Nineveh / Mosul / Bab Al Saray / near Al Basha mosque
Al Akhyar Nineveh Mosul Nineveh / Mosul / Al Nabi Younis market
Al Alwan Nineveh Mosul Nineveh / Mosul / Bab Sinjar / Al Borsa market
Al Amel Nineveh Mosul Nineveh / Mosul / Bab Al Toob / Shireen Asal building
Al Arabia Anbar Al Waleed Anbar / Tanaf border port (Al-Waleed Port)
Al Ardh Al Jadida Anbar Al Qa'im Anbar / Al Qa'im / Al-Anduls neighbourhood / section 41 / Al Nheira building/ Apartment No.4
Al Asdiqa' Baghdad Al Baiyaa Baghdad / Al Baiyaa / opposite to street 20
Al Baidha' Nineveh Mosul Nineveh / Mosul / Derkazliah area / main street
Al Ba'n Baghdad Al Mansour Baghdad / Al Mansour / section 603 / 14 Street / shop number 20 / building number 5 / door number 20/1
Al Bareh Nineveh Mosul Nineveh / Mosul / Al Thaqafiya group 11/238/305 / shop number 1
Al Bera' Anbar Fallujah Anbar / Fallujah / main street
Al Darej Anbar Heet Anbar / Rawa / plot number 7/1320 / section or district 44
Al Dhabiya Nineveh Mosul Nineveh / Mosul / left side / Al Jaza'ir neighbourhood / opposite to gas station
Al Dhuha Anbar Al Qa'im Anbar / Al Qa'im District / main road / opposite to Al Kabir Mosque / shop 122/33/31
Al Doea' Nineveh Mosul Nineveh / Mosul / left side / Al Derkazliah street
Al Donia Nineveh Mosul Nineveh / Mosul / Al Thaqafiya group / section 41 / Kurat Quz / property sequence 302/526
Al Erubah Nineveh Mosul Nineveh / Mosul / Bab Sinjar / Al Borsa area
Al Fateh Nineveh Mosul Nineveh / Mosul / Al Corniche street
Al Ghanim Nineveh Mosul Nineveh / Bab Al Saray / Khan Maqsous
Al Haq Al Yaqin Nineveh Mosul Nineveh / Mosul / Al Corniche / near Kaisariyat Sabahi Bzar
Al Harith Baghdad Al Jadida Baghdad/ Al Jadida / Main Street / near by the post office
Al Hassan Nineveh Mosul Nineveh / Mosul / Al Sheikh Omar section
Al Hedba' Nineveh Mosul Nineveh / Mosul / Al Thaqafiya group / Al Muhandiseen neighbourhood
Al Huroot Nineveh Mosul Nineveh / Mosul / District 42 West Nineveh / plot number 13/16 / door number 16/4/252
Al Jamiea Nineveh Mosul Nineveh / Mosul / Fleifel / Free Zone
Al Kawthar Anbar Al Qa'im Anbar / Al Qa'im District / Al-Jamaheer section
Al Khaima Nineveh Mosul Nineveh / Mosul / Al Corniche street / Al Khaymeh market
Al Khalid Nineveh Mosul Nineveh / Mosul / Al Jumhoria street / opposite to Samir Amis / Al Abadi building
Al Khauatem Nineveh Mosul Nineveh / Mosul / Souq Al Sarafeen / Al Habaleen branch / shop number 1/151
Al Khdra' Nineveh Mosul Nineveh / Mosul / Al Thaqafiya group / opposite to Al Iyada Al Istisharyeh
Al Khiat Nineveh Mosul Nineveh / Mosul / Khan Al Maqsous
Al Laith Nineveh Mosul Nineveh / Mosul / left side / Nineveh street
Al Mazin Nineveh Mosul Nineveh / Mosul / Bab Al Saray / Khan Maqsous
Al Mehrab Nineveh Mosul Nineveh / Mosul / Al Najafy street
Al Merbed Nineveh Mosul Nineveh / Mosul / Mosul Al Jadida / Al Saylo street
Al Messdar Nineveh Mosul Nineveh / Mosul / Al Corniche street
Al Momtaz Kirkuk Atlas St (suburb) Kirkuk / Atlas street
Al Mosul Nineveh Mosul Nineveh / Mosul / left side / Sanaat Al Maeard
Al Nahr Al Khalid Baghdad Al Harthiya Baghdad / Al Harthiya / Fair Street
Al Nawaeir Anbar Al Qa'im Anbar / Al Qa'im District
Al Nejud Nineveh Mosul Nineveh / Mosul / Mosul Al Jadida / Saylo street
Al Nemoor Nineveh Mosul Nineveh / Mosul / left side / opposite to Al Jamia'a stadium / Al Thaqafiya group
Al Nessor Nineveh Mosul Nineveh / Mosul / Khan Al Maqsous / near Al Mazen company
Al Nibal Al Arabia Baghdad Karrada Baghdad / Al Arasat / section 929 / lane 25/ building 101
Al Qalea Kirkuk Kirkuk Kirkuk/ opposite Al Shuhdaa Bridge
Al Qarorah Nineveh Mosul Nineveh / Mosul / right side shore / Al Corniche
Al Qazah Nineveh Mosul Nineveh / Mosul / Al Dawasa / near Al Rasheed Bank / mosul 3
Al Qirsh Al Mutehidah Nineveh Mosul Nineveh / Mosul / Al Zohoor street / Al Jaza'ir neighbourhood
Al Rehma Nineveh Mosul Nineveh / Mosul / Bab Al Toob / Al Sga'er market
Al Rimah Nineveh Mosul Nineveh / Mosul / Mosul Al Jadida / opposite to The General Company for Automative (previously)
Al Sa'aqh Al-Mutehidah Nineveh Mosul Nineveh / Mosul / Right side / Nineveh street / Al Sagha market
Al Sahra' Nineveh Mosul Nineveh / Mosul / Al Thaqafiya group / opposite to Al Iyada Al Istisharyeh
Al Samir Nineveh Mosul Nineveh / Mosul / Bab Al Saray / Al Corniche street / Al Habaleen market
Al Sawaf Nineveh Mosul Nineveh / Mosul / Al Andalus neighborhood / opposite to Asiacell company
Al Shahba' Nineveh Mosul Nineveh / Mosul / left side shore / Al Thaqafiya group
Al Shahed Al Asfar Nineveh Mosul Nineveh / Mosul / Nineveh street
Al Sharq Al Adna Anbar Ar-Rutbah Anbar / Ar-Rutbah
Al Shye Anbar Fallujah Anbar / Fallujah / main street
Al Taraqod Nineveh Mosul Nineveh / Mosul / Bab Al Saray / Al Corniche street / plot number 139
Al Thakerin Nineveh Mosul Nineveh / Mosul / plot number 472/200 / Nineveh district / property number 150/3/525
Al Thera' Nineveh Mosul Nineveh / Mosul / Prophet Heet street
Al Wa’eel Baghdad Al Arasat Baghdad / Al Arasat
Al Waeel (Exchange Company) Baghdad Al Kifah Baghdad / Al Kifah neighborhood/ Souq Shorja / section 125 / lane 6 / office number 9/3
Al Wareq Nineveh Mosul Nineveh / Mosul / Al Corniche street
Al Wesat Nineveh Mosul Nineveh / Mosul / Al Dewasah / Al Ahram building
Al Yusser Al Mutehidah Nineveh Mosul Nineveh / Mosul / Souq Al Mosul / Bab Al Saray
Al-Nawfal Anbar Al Qa'im Anbar / Al Qa'im District / Al-Jamaheer neighbourhood
Ardh Al Firdoos (Al-Yassemin previously) Nineveh Mosul Nineveh / Mosul / Al Corniche street
Aredh Al Sameer Nineveh Mosul Nineveh / Mosul / Souq Al Noamanya / property number 133 / district number 6 / shop number 315/4/923
Baba Gurgur Kirkuk Kirkuk Kirkuk / Baghdad road / next to Al Noor Al Kabir Mosque
Barsian Baghdad Karrada Baghdad / Karrada / Babil neighborhood / Al Arasat / section 929 / street 30 / building 69 / opposite to National Islamic Bank
Burj Al Fanar Nineveh Mosul Nineveh / Mosul / Rebia'a / Al Faisalyeh / Al Komrok
Diar Mecca Nineveh Mosul Nineveh / Mosul / Bab Sinjar / Al Borsa
Dijlah wa Al Furat Baghdad Baghdad Baghdad / Al Rasheed street / section 110 / lane 19
Dubai Al Dualiya (Sinjar previously) Nineveh Mosul Nineveh / Mosul / Al Sha'areen market
Euyun Al Meha Nineveh Mosul Nineveh / Mosul / Al Jaza'ir neighbourhood / Al Tal street / near Um Al Rabain gas station
Halab Nineveh Mosul Nineveh / Mosul / Bab Al Saray / Al Corniche / near Al Basha mosque
Hilal Al Mosul Nineveh Mosul Nineveh / Mosul / Al Jaza'ir street / near Al Jaza'ir gas station
Hilal Al-Jazira Anbar Fallujah Anbar / Fallujah / main street / Mawlood Salman building
Ibn Al Furat Nineveh Mosul Nineveh / Mosul / Al Jaza'ir neighbourhood / opposite to Quraish for meat / plot number 86/16 / North Neneveh section
Islamic Regional Co-operation Baghdad Al Masbah Baghdad / Al Masbah / section 929 / street 17 / building 59
Janat Al Andouls Nineveh Mosul Nineveh / Mosul / Al Thaqafiya group / opposite to Atiaf for mobile phones
Kirkuk Kirkuk Souq Al Kabir Kirkuk / Al Souq Al Kabir
Majmuaet Dimashq Nineveh Mosul Nineveh / Mosul / Al Faysalya / near Al Sadriyah hospital
Melli Iran Baghdad Al Arasat Baghdad/ Al Arasat / section 929 / lane 27
Nainawa Nineveh Mosul Nineveh / Mosul / Souq Al Sarafeen / Khan Maqsous
Rauet Al Beaj Nineveh Mosul Nineveh / Mosul / Al Ba'aj / district number 51 / Sinjar / plot number 2669/1 / near Al Ba'aj police station
Rauet Al Mina' Nineveh Mosul Nineveh / Mosul / plot number 248/114 / Al Qadhiya district number 40 / door number 114/248/9/305
Sama Al Iraq Nineveh Mosul Nineveh / Mosul / Bab Sinjar / Al Borsa area / opposite to Al Rahmeh mosque
Selselat Al Thahab Karbala Karbala Karbala / Al Abbas street
Shanashil Dubai Nineveh Mosul Nineveh / Mosul / Al Muthanna neighbourhood / plot number 2/701 / section 43 / Al Jeelah Bab Tabah
Shawa Nineveh Mosul Nineveh/ Mosul / Free Zone
Tadmur Kirkuk Atlas St (suburb) Kirkuk / Atlas street
Tariq Al Baiarq Nineveh Mosul Nineveh / Mosul / Al Mosul market / property sequence 794
Tebah Nineveh Mosul Nineveh / Mosul / north Garage
Um Al Rabiean Nineveh Mosul Nineveh / Mosul / Bab Al Saray / Khan Al Maqsous / Bab Al Jisr Al Qadeem
Zahrat Al Rabie Nineveh Mosul Nineveh / Mosul / right side / Bab Al Saray market
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