Iraqi Cabinet Issues Regulatory Update to Strengthen Electronic Payment Services
The Iraqi Cabinet has introduced a significant regulatory update aimed at enhancing the efficiency, security, and transparency of electronic payment services in the country. The new regulation, published in the Official Gazette on April 29, 2024, replaces the previous one established in 2014 and introduces a range of changes and enhancements.
Overview of Electronic Payment Services
According to the regulation, electronic payment services encompass various activities related to the execution and management of both legal and non-prohibited financial transactions through electronic means. This includes:
- Fund transfers
- Different forms of electronic money payments
- Facilitated and overseen by specifically tailored systems and technological infrastructures
Entities seeking to offer electronic payment services must obtain a license from the Central Bank of Iraq and adhere to its standards and regulations.
Licensing Requirements
To operate electronic payment services, entities must:
- Obtain a license from the Central Bank of Iraq
- Adhere to the Central Bank’s standards and regulations
- Maintain records of all electronic payment transactions and related data for a minimum of five years
- Furnish financial guarantees or easily liquidatable assets for the settlement of financial transactions
Penalties for Non-Compliance
The regulation outlines penalties such as:
- Warnings
- Financial penalties
- Suspension
- Revocation of licenses
In the event of non-compliance, the Central Bank is empowered to issue instructions, directives, and guidelines for the implementation and enforcement of the regulation.
Impact of the Regulation
The anticipated impact of this regulation is notably positive, as it establishes a comprehensive legal framework aimed at:
- Safeguarding consumers
- Fostering financial system stability in Iraq
Guidance on Navigating Financial Regulations
For guidance on navigating the intricacies of Iraq’s financial regulations, Al Tamimi & Company’s Iraq office is experienced in providing support to stakeholders. Our dedicated team is committed to guiding clients through the complexities of Iraq’s financial landscape, ensuring comprehensive understanding of the new e-payment legal framework.
Contact Us for Further Information and Guidance
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