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Parliamentary Finance: Officials trade with state funds through private banks
3/25/15
Finance Committee in Parliament revealed the exploitation and trade of some officials and politicians with state funds through private banks, economists and analysts called for the enactment of laws to regulate the work of banks and improve the central bank's measures to control the illegal acts of the banks.
Rehab Aboudi, an MP for the coalition of state law, noted in a statement to "the world" with "the new instructions issued by the Central Bank on the private banks lagging, which is designed to prevent currency smuggling and money laundering."
She added, "This instruction is a clear message to the private banks to change its policy or replaced to banks to try new advancement of the country's economy."
She bonded "The trading action of private banks, however, are not confined to just the politicians," where contributing "traders or financial mafias or certain countries in the use of banks to colonize the country economically."
Iraq has been under severe financial crisis, the government was forced to follow the policy of austerity in the budget, however, that some private banks exploit currency auction sale to the implementation of the money laundering and smuggling of foreign currency abroad.
The central bank decided to limit the currency auction in the budget bill, $ 70 billion, after it was up to more than 250 billion, after receiving signals the existence of money laundering operations with merchants, banks, and money orders.
The central bank has put strict instructions to the private banks after it emerged that some of her work is acceptable, what summoned citizens to reclaim their deposits and financial ones.
For his part, Rahim al-Shammari, an observer of economic affairs, said in a statement to "the world" that some private banks "took advantage of the security situation is stable and stole the money of citizens that were reserved deposits in it, noting that" the central bank instructions need to amendments, by emphasizing more on the work of these banks because Iraq will depend in part on private sector investment in the subject. "
He explained, "that the central bank does not close the private banks that deal means illegal, but only by the Trust," and urged the civil legislation of the Banking Act to regulate the work in the direction that serves the country. "
The parliamentary finance committee has raised complaints against private banks to the Finance Ministry, and called for the installation of a paragraph in the general budget on behalf of guarantee deposits due to poor management of some banks. "
Finance Committee in the House of Representatives revealed, earlier, for smuggling $ 180 million a day from Iraq to the outside, by dollar sales in the Central Bank, the impact on the value of the Iraqi dinar fall against the dollar, the price of which is witnessing a surge quickly.
The private banks control conducted by the Central Bank of Iraq, which has the power to suspend dealings in the event of proven disposal money illegally. "
In the same regard, a source in the Finance Committee said on condition of anonymity for "the world", on Tuesday, the private banks are run by officials and politicians for the purposes of exploitation of state funds illegally, indicating "that the money that take place in some private banks laundering operations aimed to destroy the economy rather than improve it, so the results will be relying on the private sector in the coming months are known targets, namely, that Iraq's economy varies his place as long as there is a long political Wade works against the state. "
It is worth mentioning that the central bank may develop over the past year the bank "economy" of the investment under the trusteeship, attributing this to "his commitment to the advancement of the bank and protect its customers," Ditto for a central "Warka" Bank also placed under his tutelage in 2012 to find work before deciding filed During the past year.
The Committee on Parliamentary Integrity has revealed earlier in the 16 regional banks to provide false invoices to the central bank to buy dollars.
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