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Opinion: the crisis of Iraqi private banks
Mahdi Mohammed Jawad Rahim
With Iraqi banks for very serious crisis on their future, the court charged with money laundering to the integrity of the vast majority of these banks and demanded the prosecution represented by the Chairmen of the boards of Commissioners, directors, with the heads of the Councils does not have executive powers and is not involved in the day-to-day work of the Bank, and as directed by the Central Bank do not have offices in the headquarters of banks.
The problem concerning the policy pursued by the Central Bank of Iraq at an auction sale of foreign currency for those wishing to import goods to the Iraqi market by converting the value of those goods to processors directly and cash advance not by opening documentary credits that all banks in the world and was followed in Iraq too.
Proceedings before the Court on the grounds that the importer on the amounts allocated to it to import goods not used for this purpose or not imported its goods, and the custom made by altsarihah the importer to prove entry of goods to Iraq is incorrect, and that the Bank is the administrator of this Act issued by the importer without the Bank's role in it.
The import process through the remittance as described above under the following steps:-
1. the importer list processing Rroforma Invoice issued by the supplier in the country of origin or source, whether factory or export company. This list is ratified by the local Chamber of Commerce in the country of origin or the country of origin and by the trade attache in that country, it is clear that no bank in the world could not verify that these lists and ratifications are true or false.
2. the Iraqi bank these lists contained the customer importer to the Central Bank for the funds contained therein to import the goods under which the Central Bank is studying the request and annexes issued its decision to approve the financing of import of foreign currency amounts, or the application was rejected or postponed in light of the conviction have of his examination of the documents submitted to it.
3. in case the approval of the Central Bank pays the importer of Iraqi dinar to the Bank that deals with the equivalent of the amount allotted by the Central Bank and the Bank in turn pays the amount in dinars to the Bank for the amount in foreign currency, the Bank later convert the foreign currency into the supplied goods to be imported.
4. the importer after the arrival of the goods to Iraq and customs fees, the provision of custom altsarihah to the Bank who then send them to the Central Bank. Certainly not to the Iraqi bank or any other Bank, the ability to verify that the custom altsarihah is correct or incorrect, and not from his duties at any time, either current conditions were imposed on Iraq following the request method (health publication) any document issued by the Central Bank could follow this method in many cases.
Reiterates here the fact that the Bank is unable to determine the validity of the signing of Iraq's commercial attache or the health of the altsarihah customs, it is not its responsibility, in the same time did not have the means to do so, if there is any misconduct it is not right that the Bank's scapegoat because bad behavior is one of the aspects of corruption in some circles. Here wonder why not be prosecuted from the misconduct of government officials with the relationship that proves misconduct, why not follow the hidden himself if an accomplice in this case.
The banking institutions dealing with the stendat just that look on their face and not of its duties to ensure the entry of the goods into the country, matched to the lists provided. Ask here also required banks to appoint observers to customs ports in Iraq to make sure that the entry of the goods into the country? Do you want to be a Bank representative present at the arrival of the goods on payment of customs duties to imported stores? These are not related to the duties of banks and how to do its work, there is no doubt that there is a misunderstanding of the duties of banks.
Here we refer to paragraphs 14 and 34 of the uniform customs and practice for documentary credits UCP600 issued by the International Chamber of Commerce and the universally adopted providing for the non-responsibility of banks on the documents submitted to it and the look on their face and they deal with documents and not others. The only way the Central Bank can confirm the arrival of the goods to Iraq is the abolition of the current system of remittances and restricted the import documentary credits banking method first, and then set conditions for open credit that is being detected on imported goods before shipment and ensure compliance with the conditions of approval by a competent and trusted institutions institution Lloyd's British and Swiss SGS, sealing the shipping documents by the detector support matching the goods for accreditation and on its responsibility.
I return now to charges of money laundering and wash it out and say that this description to cash checks that exceed the limit specified by the Central Bank, the Bank in this case knowledge of the sources of funds in accordance with the instructions and rules and anti-money laundering Act No. 39 of 2004. Amounts payable through instruments and bank transfers and transfers through the RTGS system, cannot be part of the charges of money laundering, which is supposed to be a bank to process documents of cleanliness and safety of the source of the money and follow the rule (know your customer) as well as knowledge of their use.
And I noticed that the official authorities do not distinguish between a crime and the crime of smuggling, the latter need to study and interpretation in the light of the new reality in Iraq and free foreign exchange after the issuance of the instructions of the Central Bank in 2008 the conversion instructions and the relevant Department, and only the application of the provisions of the anti-money laundering Act No. 39 of 2004.
If the importer has paid the allowance of foreign currency from the Central Bank of Iraq funds clean, was payment instruments or recording my bank account there is not money laundering, if the importer does not import the goods actually is in this case has committed the crime of smuggling funds and is responsible for the misconduct of the Bank is accused in any way. I think the difference between these two impounding and this is the essence of the subject.
It is also noted that the Central Bank had not asked yet (health publication) customs declarations, although some banks accused of having demanded to pay the charge and vowed to seek importers (the health of the breasts) which provided him with an official request from the Central Bank or any other specific party.
Finally, I would like to add that Iraq is the only country that imports financed by remittances, while other States follow the style of documentary credits, if no justification is acceptable because of the special circumstances of the country to work with the (heresy) on import, it is time to end it and return to the global method to finance imports, and enable private banks from doing its part in contributing to the development of Iraq's economy and the development of banking business to advanced stages of the banking industry in World.
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Mahdi Mohammed Jawad Rahim
With Iraqi banks for very serious crisis on their future, the court charged with money laundering to the integrity of the vast majority of these banks and demanded the prosecution represented by the Chairmen of the boards of Commissioners, directors, with the heads of the Councils does not have executive powers and is not involved in the day-to-day work of the Bank, and as directed by the Central Bank do not have offices in the headquarters of banks.
The problem concerning the policy pursued by the Central Bank of Iraq at an auction sale of foreign currency for those wishing to import goods to the Iraqi market by converting the value of those goods to processors directly and cash advance not by opening documentary credits that all banks in the world and was followed in Iraq too.
Proceedings before the Court on the grounds that the importer on the amounts allocated to it to import goods not used for this purpose or not imported its goods, and the custom made by altsarihah the importer to prove entry of goods to Iraq is incorrect, and that the Bank is the administrator of this Act issued by the importer without the Bank's role in it.
The import process through the remittance as described above under the following steps:-
1. the importer list processing Rroforma Invoice issued by the supplier in the country of origin or source, whether factory or export company. This list is ratified by the local Chamber of Commerce in the country of origin or the country of origin and by the trade attache in that country, it is clear that no bank in the world could not verify that these lists and ratifications are true or false.
2. the Iraqi bank these lists contained the customer importer to the Central Bank for the funds contained therein to import the goods under which the Central Bank is studying the request and annexes issued its decision to approve the financing of import of foreign currency amounts, or the application was rejected or postponed in light of the conviction have of his examination of the documents submitted to it.
3. in case the approval of the Central Bank pays the importer of Iraqi dinar to the Bank that deals with the equivalent of the amount allotted by the Central Bank and the Bank in turn pays the amount in dinars to the Bank for the amount in foreign currency, the Bank later convert the foreign currency into the supplied goods to be imported.
4. the importer after the arrival of the goods to Iraq and customs fees, the provision of custom altsarihah to the Bank who then send them to the Central Bank. Certainly not to the Iraqi bank or any other Bank, the ability to verify that the custom altsarihah is correct or incorrect, and not from his duties at any time, either current conditions were imposed on Iraq following the request method (health publication) any document issued by the Central Bank could follow this method in many cases.
Reiterates here the fact that the Bank is unable to determine the validity of the signing of Iraq's commercial attache or the health of the altsarihah customs, it is not its responsibility, in the same time did not have the means to do so, if there is any misconduct it is not right that the Bank's scapegoat because bad behavior is one of the aspects of corruption in some circles. Here wonder why not be prosecuted from the misconduct of government officials with the relationship that proves misconduct, why not follow the hidden himself if an accomplice in this case.
The banking institutions dealing with the stendat just that look on their face and not of its duties to ensure the entry of the goods into the country, matched to the lists provided. Ask here also required banks to appoint observers to customs ports in Iraq to make sure that the entry of the goods into the country? Do you want to be a Bank representative present at the arrival of the goods on payment of customs duties to imported stores? These are not related to the duties of banks and how to do its work, there is no doubt that there is a misunderstanding of the duties of banks.
Here we refer to paragraphs 14 and 34 of the uniform customs and practice for documentary credits UCP600 issued by the International Chamber of Commerce and the universally adopted providing for the non-responsibility of banks on the documents submitted to it and the look on their face and they deal with documents and not others. The only way the Central Bank can confirm the arrival of the goods to Iraq is the abolition of the current system of remittances and restricted the import documentary credits banking method first, and then set conditions for open credit that is being detected on imported goods before shipment and ensure compliance with the conditions of approval by a competent and trusted institutions institution Lloyd's British and Swiss SGS, sealing the shipping documents by the detector support matching the goods for accreditation and on its responsibility.
I return now to charges of money laundering and wash it out and say that this description to cash checks that exceed the limit specified by the Central Bank, the Bank in this case knowledge of the sources of funds in accordance with the instructions and rules and anti-money laundering Act No. 39 of 2004. Amounts payable through instruments and bank transfers and transfers through the RTGS system, cannot be part of the charges of money laundering, which is supposed to be a bank to process documents of cleanliness and safety of the source of the money and follow the rule (know your customer) as well as knowledge of their use.
And I noticed that the official authorities do not distinguish between a crime and the crime of smuggling, the latter need to study and interpretation in the light of the new reality in Iraq and free foreign exchange after the issuance of the instructions of the Central Bank in 2008 the conversion instructions and the relevant Department, and only the application of the provisions of the anti-money laundering Act No. 39 of 2004.
If the importer has paid the allowance of foreign currency from the Central Bank of Iraq funds clean, was payment instruments or recording my bank account there is not money laundering, if the importer does not import the goods actually is in this case has committed the crime of smuggling funds and is responsible for the misconduct of the Bank is accused in any way. I think the difference between these two impounding and this is the essence of the subject.
It is also noted that the Central Bank had not asked yet (health publication) customs declarations, although some banks accused of having demanded to pay the charge and vowed to seek importers (the health of the breasts) which provided him with an official request from the Central Bank or any other specific party.
Finally, I would like to add that Iraq is the only country that imports financed by remittances, while other States follow the style of documentary credits, if no justification is acceptable because of the special circumstances of the country to work with the (heresy) on import, it is time to end it and return to the global method to finance imports, and enable private banks from doing its part in contributing to the development of Iraq's economy and the development of banking business to advanced stages of the banking industry in World.
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