Legal: the central enforce payment of 80% of the value of the currency sold to prevent smuggling

Economic Page
January 30, 2016 12:55
Readers Number: 42

Legal expert Tareq Harb, said the central bank applying the provisions of the sale of state funds law Lima about the need to pay 80% of the estimated value of foreign currency that were sold before the delivery of the currency in order to prevent the smuggling of currency.

He said the war in a statement that "the invitation of prime minister yesterday, the Iraqi Central Bank to review its policy on currency smuggling and money laundering requires the Central Bank of the application of several laws to combat these serious issues and the first of these laws Law No. 21 of 2013 law on the sale and rental of state funds, especially articles 29 and Then of this Act relating to the establishment of government departments to sell transferred state funds. "

He added that "the Central Bank department of state departments and foreign currency in which it sells at the auction is from state funds, and as the currency is one of the movable law and the lack of provision in this law excludes the central bank of its provisions, so the central bank applying the provisions of this law, especially those Insurance respect to the payment of 20% of the appraised value of foreign currency auctions by the participation and the need to pay 80% of the estimated value of foreign currency that were sold before the launch of the currency or delivery for the benefit of the buyer. "

He said the legal expert, said that "the process under this law requires an actual deposit of Iraqi money and not only securities with the consequence that the special measures for the banking Clearing, it closes the door to money laundering and smuggling of currency to some extent does not say eliminate it."

And "as the central bank applying the provisions combat the laundering of the new money No. 39 of Law in 2015 and especially with regard to the regulatory approaching that oversee and ensure that anti-money laundering requirements, the Ministries of Commerce and Industry and Securities Commission and the Office of Insurance, in addition to the central bank itself Ward In the first article of this law, as well as the application and implementation of the provisions of Article V of the law which established the Council of the fight against money laundering from the relevant authorities in this process, interior, finance, justice and Commerce and the General Secretariat of the Council of Ministers and National Intelligence and National Security and the Securities Commission and a counter-terrorism and a representative of the Judicial Council, such as the Ministries the above".

He stressed the need "not to neglect the provisions of Articles 40 and 41 of the Central Bank Law No. 56 of 2004, which have been awarded the Bank alone the authority to take measures to regulate the work of banks and supervision of and demand for the bank and its clients and its branches information as well as articles 2 and 3 of the Banking Act No. 94 of 2004, which granted the Bank Central executive legal force to all banks and authority in checking accounts and books and records of any bank. "

He said the war "anti-money laundering delicate and complex and difficult process and requires from all sides to cooperate with the central bank to achieve this goal."
The Office of the Prime Minister Haider al-Abadi, the Iraqi Central Bank called for a review of its policy on "the smuggling of foreign currency."

A spokesman for the Office Saad al-Hadithi that "the central bank's policies as an independent government can not be a party to work details and management of fiscal and monetary policy, they are within the jurisdiction of the central bank, such as selling foreign outlets currency," adding that it "policy by the Bank as an independent body."

However, "but all the cases, the economic situation through which the country is difficult, and requires conduct reviews of all policies on financial management level, and monitoring and transmission of funds, and money laundering and smuggling of foreign currency out of Iraq under the investment cap," stressing that "this is very important." .

Newborn and pointed out that "the Iraqi currency by which to provide and pay a large part of it by auction Central Bank, on the grounds that the source of the money supply and liquidity of financial savings probably a big part of citizens and non-existent in the economic cycle."

The official document of the Finance Committee in Parliament revealed that the central bank sold the amount of the US dollar in the past year more than in 2015 and Iraq's imports of foreign currency obtained from the sale of crude oil in the same year.

The document showed that the country's oil revenues for the year 2015 amounted to $ 38 billion, while sales of the bank in the same year was more than $ 44 billion, a difference of more than five billion dollars, that is what sold Iraq of foreign currency more than its imports from them.