With IMF guidance, CBI plans radical change in banking laws

Posted: November 26, 2013 in Iraqi Dinar/Politics
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Tuesday, November 26th, 2013
The Governor of the Central Bank of Iraq acting Abdel Basset Turki, all efforts to radically change the laws in the banking sector, under the guidance of the International Monetary Fund, stressing that «the new laws that advance economic reality».

He said during a seminar held by «Central» to discuss amendments to its law office in 2004 and the Banking Act and the law against money laundering, that «the delegates of the IMF in Washington advised us to play a developmental role and not limiting the role of central banks to regulate the monetary policy of their countries». He pointed out that «the central bank to take this guidance, which is preparing an economic development plan that will promote the economic reality of Iraq».

He pointed out that «most of the laws on the banking sector approved either after the change in 2003 or during periods varied environment exactly what we need today, so it has to be modified the Banking Act, which limits the movement and activity of private banks, local and even Arab and foreign companies operating in Iraq».

The Turkish during the seminar, which will continue its work for five days and involving a number of academics, experts and managers of banks, that «the central moving towards amending the anti-money laundering, as is the case with other countries that are looking through the experts, the possibility of the development of law».

He pointed out that «Sikad an international conference in Bahrain on 25 ongoing to determine the main obstacles facing the law and put forward the possibility of a new version compatible controls and mechanisms for all countries».

The CEO of the company «Beblan» British Circo Abed, specializing run banks, according to what is known as «the banking system mass email», that «the Iraqi central focus two years ago, the problem of the scarcity of capital, which makes it difficult to enter into contracts with investment firms or executive foreign, they are demand bank guarantee letter of very large amounts of capital in excess of the Iraqi banks ».

He said «After raising banks’ capital Another problem was the failure of the mechanisms of action of these banks, Vaovernmah of them are still operating systems completely forgotten in the rest of the states, the private have been applied simple systems, which led to the reluctance of banks, Arab and foreign investment for work in Iraq as they need systems To keep up with the regulations ».

And the law against money laundering, said a former director of one of the largest Iraqi banks, who preferred not to be named, said that «the Iraqi arena has become a safe haven for funds dirty run by the mafia international, and the reason is the weakness of controls on the movement of funds and the dominance of views a window on the management of banks, the most important is busy security agencies to fight terrorism ». The «the past few years have seen a huge embezzlement, mostly in state banks, which are Rafidain and Rasheed and Trade Bank of Iraq, and so far has not closed the investigation».

The deputy governor of the «Central» the former appearance of Mohammed Saleh stressed that «the weakness of the local banking sector due to weak capital and an inability to compete in the market, coupled with the limited products that are limited only to buy foreign currency from the central bank auction and sell it in the market to dealers and customers, and the conversion amounts abroad ».

The seven state banks operating in Iraq, three of which are sectoral, in addition to the 31 banks waged and 10 Arab and foreign banks operating either in accordance with the principle of partnership with Iraqi bank or a separate branch, and back to the banks, Turkish, Iranian, Lebanese, Bahraini and Kuwaiti and UAE.



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