Iraq Introduces New Regulations for Electronic Payment Services
The Iraqi Cabinet has issued a significant regulatory update regarding electronic payment services, aimed at strengthening the efficiency, security, and transparency of the country’s financial sector.
Background
The new regulation replaces the previous one established in 2014 and introduces a range of changes and enhancements. It defines electronic payment services as encompassing various activities related to the execution and management of both legal and non-prohibited financial transactions through electronic means.
Key Provisions
- Licensing: Entities intending to offer electronic payment services must obtain a license from the Central Bank of Iraq and adhere to its standards and regulations.
- Record Keeping: Both service providers and the Central Bank of Iraq are required to maintain records of all electronic payment transactions and related data for a minimum of five years. These records must be made available for inspection and audit when necessary.
- Financial Guarantees: Service providers must furnish financial guarantees or easily liquidatable assets for the settlement of financial transactions, in accordance with the Central Bank of Iraq’s stipulations, to ensure financial stability.
- Penalties: Non-compliance may result in penalties such as warnings, financial penalties, suspension, or revocation of licenses.
Impact and Implementation
Experts believe that the anticipated impact of this regulation is notably positive, as it establishes a comprehensive legal framework aimed at safeguarding consumers and fostering financial system stability in Iraq. Service providers are obligated to adjust their operations to comply with the regulation within six months from its enforcement date.
Expert Insights
Al Tamimi & Company’s Iraq office is well-versed in navigating the intricacies of the country’s financial regulations and is committed to guiding stakeholders through the complexities of Iraq’s financial landscape. The firm’s dedicated team provides comprehensive support and understanding of the new e-payment legal framework, offering expert advice and guidance on compliance matters.
Contact Us
For further information and assistance, please contact:
[Your Name] Al Tamimi & Company Iraq Office