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Baghdad scales News - Publish / scales News / text Islamic banking law voted by parliament today during its 25 first legislative term of the second legislative year.

The following is the text of the law.
Name of the people
Presidency

Based on what passed the House of Representatives and approved by the President of the Republic and based on "the provisions of item (I") of Article (61) and item (III ") of Article (73) of the Constitution

Issued the following law:
No. () for the year 2015
Law

Islamic banks

chapter One
Incorporation and goals
Article 1 may be the establishment of an Islamic Bank in accordance with the provisions of the Companies Law No. (21) for the year 1997 and the General Companies Law No. (22) for the year 1997 and the Banking Law No. (94) for the year 2004 that includes its Memorandum and rules of procedure an obligation to engage in banking activities permitted without interest taking and giving According to the formulas of banking transactions that are not inconsistent with the provisions of Islamic Sharia law in the field of both accepting deposits and providing other banking or in the field of finance and investment
Article 2 of the Islamic Bank aims to the following:
First, the provision of banking services and practicing financing and investment on the basis of non-interest in all its forms.
Second, the development of the means of attracting money and savings and participate in the development of productive investment banking methods and means are not inconsistent with the provisions of Islamic Sharia law.
Third, to contribute to economic and social development.

Chapter II
Licensing
Article 3 of Islamic banks and their branches and offices is subject to license and branches of foreign banks to the Iraqi Central Bank Law No. (56) for the year 2004 and the Banking Law No. (94) for the year 2004.

Chapter III
equity capital
Article 4 I. shall not be paid-up capital of any bank Islamist least (250) two hundred and fifty billion Danaraly to pay (100) one hundred billion dinars, of which the foundation and pay off the rest in three equal annual installments from the date of granting the license for the bank to raise the minimum according to Banking Law No. (94) for the year 2004.
Second, the bank maintains a reserve in accordance with "as determined by the Central Bank of Iraq.
Thirdly vacation to Islamic banking branches of foreign banks shall not be granted unless it prevents an amount equal to the capital as determined by the Central Bank of Iraq.

Chapter IV
Acts of Islamic banks
Article 5 bank practiced for its own account or on behalf of others inside and outside Iraq, all aspects of Islamic banking activities, including:
First, finance and investment work in various projects and activities that are not contrary to Islamic law.
Secondly, the conclusion of contracts and agreements with individuals, businesses, institutions and organizations inside and outside Iraq and not contrary to the provisions of Islamic Sharia law.
Third, start-up companies or contribute in different areas of complementary aspects of its activity and contributing to the activity of existing companies is forbidden in Islam, "the consent of the Central Bank of Iraq and not more than the ratio determined by the Bank of bank capital and reserves that.
Fourthly contribute to the approved capital funds of Islamic banks inside and outside Iraq after obtaining the consent of the bank.
Fifthly opening accounts and accepting deposits.
Sixth own movable and immovable property and selling, investing and leasing and renting, including the reclamation of land owned or leased and prepared for agriculture, industry, tourism and housing after the approval of the Central Bank of Iraq and the transfer of ownership of real property upon the completion of the purpose which it was created.
Seventh founding of investment portfolios and investment funds and the issuance of bonds or mutual muqharada dedicated muqharada bonds as determined by the Central Bank of Iraq.
Eighth establish mutual insurance funds for the benefit of the bank or its clients in various fields.
IX acceptance of trade and financial securities for safekeeping and collection of rights arising out of their respective owners and the payment and collection of instruments and orders and bills of exchange unless, including interest or contravene the provisions of Islamic Sharia law.
X. provide funding for the purposes of dealing in foreign currencies in spot exchange markets.
Eleventh investment deposits under the agency contract for a fixed wage or only to accept payment plus a specified share of the profit realized on the investment process in the event of increase than the limit mentioned in the pre-contract.
Twelfth act after depositors money back to their owners or as agreed upon filing.
Article 6 prohibits the Islamic Bank as follows:
First, dealing in bank interest taking "and the tender".
Second, investment or financing of any commodity or project not granted by Islamic law.
Third, the financing of real estate projects brokerage operations.
Fourth: the stomach encroachment value of fixed property for use 30% of the net basic own funds shall not exceed the proportion of its investments in fixed-rate, including property mentioned above 50% of the value of its investment portfolio.

Chapter V
Sharia Supervisory Board
Article 7, first, a constituent body for each bank had to be when it was founded and with the approval of the Central Bank of Iraq body called (Sharia Supervisory Board)
B Sharia Supervisory Board is composed of five (5) members be at least two of whom are experienced in the Islamic Jurisprudence and the three of them in the least experienced and competent in the banking, legal and financial business.
C after the end of the constituent body responsible for the General Authority for appointment of members of the Bank's Shari'a Supervisory Board and the approval of the bank.
Second, members of the Commission shall be elected from among them president, "and a member of" executive "and may draw upon whom it deems appropriate" of people and organizations to achieve its goals
Thirdly it shall not be Oeda E Sharia Supervisory Board of administrators or employees of the directors or members of the board of directors or shareholders in the bank.
Fourthly Membership shall be for three (3) years, renewable for approval of the General Authority for Bank after obtaining the consent of the bank.
Fifthly it is bound by decisions of the Commission of the Bank.
Article 8 The Commission shall following tasks:
First, monitoring the work of the bank and its activities and the extent of its commitment to the provisions of Islamic Sharia law.
Second, access to the reports of the forensic audit department in the bank or branch.
Thirdly reporting on things that are referred to it by the Board of Directors.
Fourthly submit a report on its activities and the extent of the bank's commitment to the provisions of Islamic Sharia law to the Bank's shareholders in general meeting, which is held annually, "or the Board of Directors of the Bank for the government.
V. to express an opinion in the work of the bank and its activities and its contracts in accordance with the provisions of Islamic Sharia law.
Sixth consider the things that are assigned by the Bank's Board.
Article 9 of the solution may not be the legitimate authority to exempt any member or where only a reasoned decision of the Board of Directors two-thirds majority and the approval of the General Authority of the Bank.
Article 10 shall be established in each bank or Islamic separate section called Branch (internal forensic audit section) the audit work of the bank and to assess the extent of its commitment to the provisions and principles of the Islamic Sharia and international accounting standards and legitimacy and guidance and instructions issued by the Sharia Supervisory of the Bank Board.

Chapter VI
Financial Statements
Article 11 of the Islamic Bank and Islamic branches of foreign banks is committed to preparing the annual budget and profit and loss accounts in accordance with international law and standards, and the Islamic Sharia.

Chapter VII
The liquidation of the bank
Article 12 in accordance with the liquidation of the bank, "the provisions of the Banking Act No. 94 of 2004, and without prejudice to the provisions of Islamic Sharia law and under the supervision of the Sharia Supervisory Board, treats convicted and depositors and shareholders at the bank's liquidation as follows:
First First pay depositors accounts in current accounts.
Secondly paid after the rights of depositors in savings and investment accounts, depending on "the terms of the accounts related to the rights of owners and lead Muqarada documents or investment portfolios or investment funds under the terms of each issue.
Thirdly paid after the rights of debtors to the bank.
Fourthly Drain the rest of shareholders' equity on the basis of sharing the remainder of the funds owned by each shareholder shares.

Chapter VIII
General Provisions
Article 13 First, banks are subject to the Islamic establishment in accordance with the provisions of this Act the law of the Iraqi Central Bank No. (56) for the year 2004 and the Banking Law No. (94) for the year 2004 and the Law on anti-money laundering No. (93) for the year 2004 and the Companies Act No. 21 of 1997 and the Companies Act Public number (22) for the year 1997, international accounting standards and legal and accounting standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions at all unless it is contained in would provision in this law.
Secondly exempted Islamic Bank and foreign Islamic bank's branch of the tax and fees on transactions relating to the purchase and sale of real estate, land and cars in the sale of Murabaha and Ijara ended with ownership and participation transactions decades, with the exception of real estate belonging to him as a result of the settlement of a religion or to house its staff.
Third, the Iraqi Central Bank to issue instructions to determine the prudential ratios that are compatible with the activities of Islamic banks.
Article 14 on the Islamic banking institution is a special law and the institution before the entry into force of this law conditioning their positions in accordance with the provisions of this law.
Article 15 of the Bank to issue instructions to facilitate the implementation of the provisions of this law.
Article 16 wherever they appear the word means the bank by the Central Bank of Iraq and the Islamic bank means the bank.
Article 17 of this law shall be the date of its publication in the Official Gazette.

Reasons
In order to organize the work of Islamic banks and branches of foreign banks that practice Islamic banking in the Republic of Iraq and to preserve the safety and soundness of the banking system initiated this Aleghanon.anthy / 29 / d 24


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