The competence of financial services and monetary policy continued .. court dispute
The competence of financial services and monetary policy continued .. court dispute is to determine responsibility for the error under which imposed the fine
Judge / Mohsen Saleh Abdul Razak
Given the urgent need imposed by the necessities of the overall economic development in the country and change the economic system from a planned to a market economy economy necessary the establishment of specialized commercial courts has been the Central Bank Law No. 56 of 2004 text in section XII on the establishment of a tribunal called the Court of the financial services consist of body judicial composed of five members has identified Article 63 from the Court's jurisdiction to review orders and decisions issued by the Central Bank, as follows: -
1. refusal to request a license or a bank statement or add a condition or restriction issue when issuing permit or license or cancel a license or permit under the banking law or under this Act
2. impose an executive or administrative sanctions procedure under the banking law or under this Act
3. issue an order to any person engaged in an activity that requires a license or permit issuance to refrain from engaging in this activity without obtaining a license or permit required by the central bank.
4. The extension of the term of the trustee
5 - to take any action -nst the provisions of Section atheist and twelfth, thirteenth and fourteenth of the banking law who specializes filed a lawsuit before the Financial Services Tribunal
6. review the actions taken by the trustee or judicial goalkeeper to the extent of overriding the limits of the authority granted to them under the banking law
7. Chapter disputes that arise between banks and financial institutions.
8. Court has jurisdiction in matters prescribed by any other law as one of the court's jurisdiction.
The paragraph states (4) of the above article on the lack of jurisdiction of the Court to review the decisions of the central bank or action on the development and implementation of monetary policy, including foreign exchange rate policy.
The priorities of the Iraqi Central Bank as the only party authorized to draw monetary policy of the country is the status of the main objectives that achieve stability
And maintain a stable financial system in order to achieve this task has given the Iraqi Central Bank Law to the bank the power to issue any instructions or orders he deems necessary for the implementation of the application of the provisions of the law and that under paragraph (5) of Article (4) thereof, which stipulates (the Central Bank of Iraq is in the process implementation tasks in accordance with the provisions set forth in this law binding orders directed to specific individuals or entities in which the cost of these individuals or entities specific tasks in line with the provisions of this law) issuing authority.
And know the monetary policy as direct adopted by the monetary authority to intervene in order to influence the economic actors through the money supply and directing credit using the means of control over the credit activity of commercial banks and is a tool of economic policy tools to guide economic activity and monetary policy and interest rate instruments as the Bank Act Central has not set the interest rate, but I gave it to the Board of the Central Bank's management to issue the necessary instructions about it and its tools are also legal reserve is mandatory reserves provided for the composition acceding laws of the activity of banks, companies, and according to the rates determined.
The law stipulates that the executive regulations for banks, as stated in Article 1. Second, which determines the Bank (the central bank) the percentage of the reserves can be adjusted this ratio from time to time as provided for in Article 4 - the first ones to pay the bank that fails to keep reserve which is equal to the reserve requirements a fine equal to the bank interest on the initial credit.
The Central Bank under Article 29 P 2 of the Central Bank Law that imposes Sathsal of any bank fails to keep the precautions required minimum levels consistent with paragraph (1) penal interest on the shortfall in required reserves for such bank rate until the deficit is corrected.
Mmatkdm clear that the decisions issued by the central bank and monetary policy provided for in Article (16) of the Central Bank Act, including the Manst in paragraph (b) of the above article concerning the Central Bank control the levels of cash reserves outside the jurisdiction of the Court Services.
Finance pursuant to the provisions of Article 63 in 4 of the Act but the mechanism followed by the central bank in the implementation of monetary policy, including the imposition of administrative penalties of imposing penal interest would be subject to appeal before the Financial Services Tribunal, because the court will be determined by considering the legality of the imposition of the sentence and been engaged monetary policy and imposed Punishment for implementation.
In this regard the resumption of Baghdad court went the Federal Rusafa in the same direction as it came in her decision number 328 | m | 2015 to 14 | 6 | 2015 (and the kindness of the consideration of the resolution characteristic found that the incorrect and contrary to the law because the court case received from the competent authority pursuant to the provisions m | 63 P 4 of the Iraqi Central Bank Law, citing that the central bank measures towards distinctive bank fall within the concept of monetary policy referred to in Article 63 in 4 of the Central Bank Law and when a closer look at the concept of monetary policy, found that professionals in the financial science and the economy point to the It's direct, adopted by the monetary authority to intervene in order to influence the economic actors through the money supply and the imposition of interest rate and directing credit to commercial banks and where that featured request (plaintiff) did to the amount of interest or any action taken in general to all the banks, but was asked to stop claim amounts prosecutor alleges that the central bank is not caused by the demand be an objection to monetary policy undertaken by the Central Bank, but the dispute is going to determine responsibility for the error under which imposed the fine and this is one of the core competence of the Financial Services Tribunal.
* Vice President of resuming Baghdad Rusafa Federal