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Iraq’s Central Bank Unveils New Rules for Exempted Credit Access and Grant Programs

Baghdad, Iraq - The Central Bank of Iraq (CBI) has announced new regulations governing exempted credit access and grant programs for banks operating in the country. The move is aimed at promoting financial stability and transparency in the banking sector.

New Rules for Foreign-Owned Banks

Under the new rules, foreign-owned banks will be required to obtain a license from the CBI before establishing a subsidiary or branch in Iraq. To qualify for a license, foreign banks must demonstrate that they are subject to comprehensive supervision or regulation by a supervisory authority in their home country.

Licensing Requirements

To apply for a license, companies must submit a written application to the CBI, accompanied by a range of documents and information, including:

  • Details on their authorized and subscribed capital
  • Qualifications and professional experience of their administrators

Foreign-owned banks will also be required to maintain a minimum capital requirement of 50 billion dinars and have adequate measures in place to prevent money laundering and terrorist financing.

Key Provisions

The regulations include the following key provisions:

  • The total number of licenses for banks controlled by foreign persons is capped at six until December 31, 2008.
  • Foreign individuals can own up to 50% of an existing or new domestic bank without counting towards the limitation.
  • Licenses will be granted for an indefinite period and are not transferable.
  • Compliance with terms and conditions is a continuing requirement applicable to all license holders.

Benefits

The new regulations are aimed at promoting financial stability and transparency in the banking sector, and are expected to boost confidence among investors and consumers alike.

Key Highlights

• Foreign-owned banks must obtain a license from the CBI before establishing a subsidiary or branch in Iraq. • The total number of licenses for banks controlled by foreign persons is capped at six until December 31, 2008. • Foreign individuals can own up to 50% of an existing or new domestic bank without counting towards the limitation. • Licenses will be granted for an indefinite period and are not transferable. • Compliance with terms and conditions is a continuing requirement applicable to all license holders.

Contact

Central Bank of Iraq [Email] [Phone]