[ltr] Opinion: Iraqi private banks crisis [/ltr]
Mahdi Mohammed Jawad Rahim
[ltr] Pass Iraqi private banks extremely dangerous crisis on its future, has brought integrity charge of money laundering Court to the vast majority of these banks and demanded with prosecution represented heads boards of directors and managers of Commissioners, with the heads of councils do not executive powers have nothing to do with the daily work of the bank, according to the Bank's guidelines Central does not have offices in the headquarters of the banks.
The problem is related to the policy pursued by the Central Bank of Iraq in an auction sale of foreign currency to finance wishing to import various goods to the Iraqi market by converting the value of those goods to processors directly and pay the cash advance and not by opening letters of credit, which operates all the banks in the world and was followed in Iraq also.
Suits filed before the court on the basis that the importer about custom him to import goods amounts not used for this purpose, or to meet her goods not imported actually, and that customs Altsrihh provided by the importer to prove the entry of goods into Iraq is incorrect, so the bank is considered responsible for this act of from the importer without having any of the bank's role in it.
[rtl]ا[/rtl]The import process through hawala as stated above are made pursuant to the following steps: -
[rtl]1-Rroforma Invoice [/rtl]provides a list of imported Rroforma Invoice processing issued by the supplier in the country of origin or source, whether plant or export company. This list ratified by the local Chamber of Commerce in the country of origin or the exporting country and by the commercial attaché in that country, it is clear that any bank in the world can not be ascertained from the fact that these lists and ratifications are true or false.
[rtl]2-[/rtl]offers TBI these lists contained him by his client imported to the Central Bank requesting the allocation of the amounts contained therein to import goods under who shall CBI examines the request and its annexes and issue its decision to approve the import amounts required foreign currency financing, or demand or postponed rejected in light of the conviction that has available from the study of the documents submitted to it.
[rtl]3-[/rtl]in case the central bank approval importer pays the Iraqi dinar to the bank that deals with the equivalent of the amount allotted to him the central bank and the bank in turn pay the amount in dinars to the bank to meet the allocated foreign currency amount, and the bank will then convert the foreign currency to the party that will be equipped with the goods to be imported.
[rtl]4- [/rtl]The importer after the arrival of the goods to Iraq and the payment of customs duties by, providing Altsrihh from customs to the bank, which in turn send them to the central bank. Certainly that does not have a Bank of Iraq, or any other bank, the ability to verify the fact that the customs Altsrihh correct or incorrect, it was not from his duties at any time, either the current conditions in Iraq have been imposed to follow the style of the request (Health issuance) any document issued by the Central Bank Fbamkan follow this style, as in a lot of cases.
Repeat here the fact that the inability of any bank that asserts the validity of the signing of the Iraqi commercial attaché or the validity of the issuance Altsrihh customs, because it is not his responsibility, and the same time does not have the means to do so, if there was misconduct of any party it is true that the bank is a scapegoat because of the disposal Bad represents one aspect of corruption in some circles. We wonder why not sued misbehaved with the relationship of government employees who prove misconduct, and why Aalahak hidden himself if complicit in this case.
The banks and institutions dealing with documents that look just at face value and not a sound of their duties to ensure the entry of goods into the country or compliance as stated by the lists provided. Do you wonder here also required banks to set observers customs ports in Iraq to make sure the entry of goods into the country? [rtl]وه[/rtl] Is it required to have a representative present when the bank and the arrival of the goods after payment of customs duties by the importer to the stores? These things are not related to the duties of banks and how to do their work, but I doubt that there is a misunderstanding of the duties of banks.
Here is worthwhile to point out paragraphs 14 and 34 of the assets Uniform Customs and Practice for Documentary Credits UCP600 issued by the International Chamber of Commerce and internationally accredited provide for the lack of responsibility of the banks of the documents submitted to them and look at the face of sound and it deals with the documents and not the other. The only way by which the central bank to ensure the arrival of the goods to Iraq is canceled orders currently applied system and restricting imports in the style of documentary letters of credit first, and then setting conditions for opening credit that is being detected on imported goods before shipment and make sure they conform to the conditions of accreditation by one competent and reliable, including Lloyd's of London and Swiss company SGS institutions, sealing the shipping documents by the detector support matching the goods to the terms of bank credit and responsibility. I now return to the charge of money laundering and bleached and say that this description respect to audit the cash amounts that exceed the specified limit by the central bank, because the bank in this case, knowledge of sources of funds in accordance with the instructions and international rules and the law against money laundering No. 93 for the year 2004. Amounts paid Using instruments and money orders and bank transfers through the RTGS system can not be part of the charge of money laundering as it is supposed to be the bank with the relationship process has documented the cleanliness and safety of the source of the money and follow the base (know your customer), as well as knowledge of their use.
And I noticed that the official authorities do not distinguish between the crime of money laundering and crime smuggling, as the recent need to re-study and interpretation in the light of the new reality in Iraq and the freedom of foreign exchange after the issuance of central bank instructions in 2008 to cancel the foreign exchange competent and Circuit instructions, and only apply the provisions of anti-money laundering No. 93 of 2004 Act.
If the importer had to pay instead of the foreign currency obtained from the Iraqi Central Bank money is clean, if the payment is made instruments or recorded on a bank account, there is no money laundering, but if the importer does not have to import the goods actually, it was in this case had committed the crime of smuggling money and is responsible for the misuse of this act shall not be charged by the bank in any way. I think that the obvious difference between these two offenses, and this is the essence of the subject.
He also notes that the central bank has so far not asked (Health issuance) of customs declarations, although some banks may be accused of asking him to pay for the charge that it has pledged to importers concerned procuring (Health breasts) as it provided him with a formal request from the Central Bank or any other specific destination.
Finally, I would add that Iraq is the only country that financed imports through remittances, while other countries follow the style of documentary credits, and if there is no acceptable justification because of the exceptional circumstances experienced by the country to work in this (Fad) in import now is the time to put an end her return to the world the right way to finance imports, and to enable private banks to carry out its intended role in contributing to the development of Iraq's economy and the development of the banking business to the advanced stages reached by the banking industry in the world.