During talks on money laundering and terrorist financing
Baghdad / Tarek Al-Araji
Efforts exerted by the Central Bank of Iraq to communicate with major international economic organizations, particularly the Bank and the International Monetary Fund to review the joint programs and the organization of the Iraqi financial sector and the extent of progress achieved.
Governor of the Central Bank of Iraq Ali al-Alaq said in an interview with "Sabah" said: "Iraq asked the IMF and the World Bank and specialized international organizations to support the organization of donors conference in Kuwait,
As well as to help Iraq ease the problem of correspondent banks, revealing the bank’s completion of the "National Strategy for Combating Money Laundering to finance
terrorism" which will soon be transferred to the Council of Ministers for approval.
"The quarterly meeting noted that the visit to Washington and New York was for discussions with the International Monetary Fund and participation In the quarterly meeting between the Fund and the countries that Iraq has among them, having programs with the Fund in force, having a 7-year program, began in 2016, there is a periodic review of the program’s progress and focus and discussions on the 2018 budget.
He pointed out that the International Monetary Fund would prefer the budget to be prepared according to the program agreed upon, and that there be ceilings for public debt, deficit and operating expenses while maintaining expenses of a social, health and security, such as health care and salaries. For these sectors ".
Reduce the deficit and noted that " the discussions that took place in the Jordanian capital Amman earlier, addressed the first draft of the budget in which large deficits, and since then the government has worked under the guidance of the Prime Minister to reduce the deficit and unnecessary expenses and tried to increase local revenues and the goal of the program to reduce the deficit Between domestic revenues and domestic expenditures so that the country is not always exposed to the risks of fluctuations in oil prices and that there is a kind of safety valve at the very least.
He pointed out that "the visit of the United States of America included a number of meetings, the most important meeting of the governors of banks with the Director General of the International Monetary Fund, and explained in our speech the operation of the program with the Fund and asked for more flexibility and understanding in some of the requirements and conditions, based on the circumstances of Iraq,
The conference of donors in Kuwait, as well as helping Iraq to ease the problem of correspondent banks abroad and there were side meetings with the governors of several central banks.
"The lecture was held at the Institute for Near East Strategic Studies, which dealt with clarifying the economic and financial situation and the procedures of the Central Bank regarding the issue of money laundering and terrorism financing.
The Council had an impression on the previous reports submitted by the Central Bank of companies listed in the list The international community by a vote in the Security Council, these cases were the subject of interest by the Security Council, especially that it was coordinated with other countries and
was considered a successful model of international cooperation.
Al-Alak said: "A presentation was made on the procedures of the Central Bank and the steps taken during the last three years regarding this issue in all its dimensions. Also, copies of the National Strategy for Combating Money Laundering and Terrorism Financing
were distributed which the bank has completed and is considered an important strategy.
To the Council of Ministers soon, but we distributed models there and offered to the members were welcomed and attention, especially as the strategy was based on consultations with organizations with international experience on this subject at all stages.
And on the opinion of the International Monetary Fund budget said: "The IMF is intended to be deficit in the federal budget of Iraq for the year 2018 does not exceed 15 trillion dinars and this is what we seek and I think we implicit this figure in the budget, as the price of a barrel of oil up to $ 43 dollars and the same quantities export In the budget of 2017,
"noting that" the International Monetary Fund after the completion of the budget and some other simple requirements will be the beginning of next December to the meeting of its Board of recommendations and if the report is positive and in line with the program will be launched other payments and start the payment before the end of the year
And the current rate of $ 150 million from the International Monetary Fund and approximately one billion dollars from the World Bank and other amounts of the seven industrialized countries to reach combined amounts to approximately 3 billion end of this year.
" Applications to establish
"The absence of applications to establish commercial banks and requests specific to the establishment of Islamic banks, because they benefit from the law, which was legislated by the House of Representatives, which granted facilities to establish these banks, because it made its capital 100 billion dinars instead of 250 billion dinars and then raised to 250 Within three years
and this encouraged many to apply for the establishment of these banks with the central bank’s reservation on the amount of capital, because he has a view that the capital is not determined by law, but is determined in accordance with the circumstances and requirements.
He said that the Central has a lot of the establishment of Islamic banks requests, but the bank ‘s board at its previous meeting realized that this number can not be added to the banks because it is above the energy and the potential of the existing market, and therefore asked for more study
on the subject until the final decision.
" Merger of banks
Regarding commercial banks, he pointed out that "the number of large and the future will see the integration of these banks, as happened in all countries of the world, starting with a large number and then ends with a specific number, but they are large banks, stressing that" the Central can not push and force banks to integrate but in practice and practical experience will adopt In the future merge and reduce the number. "
He stressed the existence of directions to the Central Bank to open a branch in Erbil or Sulaymaniyah and conducted a year ago meetings with the government, provided that this branch has the authority to carry out its oversight, supervisory and financing role for the banking sector and financial institutions and procedures related to combating money laundering and terrorism financing
and approved the region months ago after clarifying the dimensions and risks that The presence of a part of Iraq is not subject to censorship, which causes external problems and regulatory for this sector within the region and we have reached this agreement has been signed in this regard and has already been working on the opening of a branch in Erbil as a first step
and with the events that took place and repelled The decision of the House of Representatives to stop financial transactions and the sale of foreign currency to the region carried out bank transfers and the decision of the province parked.
" Branches of the central