Central Bank OF Iraq Payment Systems 6/21/16

The payment network consists of the following systems:

• RTGS: Real Time Gross Settlement System
  
• C-ACH: Cheque - Automated Clearing House
  
• GSRS: Government Securities Registration System
  

The legal framework of payment and settlement systems

IPS Components

• The system was activated on the 24-AUG-2006. The system connects the CBI with the main bank branches, and the Ministry of Finance (MOF) for exchanging high valued transactions inside Iraq.
  
• This system replaced the manual execution for operations and eliminated settlement risks between banks.
  
• CBI is the owner of the system, and takes on the responsibility to install the required software for the participant banks, in additon to providing training courses for users. On the administration side for the CBI, important processes such as the monitoring of banks are now made easier.
  
• At beginning five banks participated in settlement processes, but gradually the CBI widened the system to cover all banks and foreign branches that have a license in Iraq.
  
• The system has safety features (i.e. the 4 four eyes principle), and the authorization required to activate the system can only be provided by CBI.
  

• The system enables the participants banks and their branches to exchange payment orders automatically. The final settlement is processed and sent to the Real Time Gross Settlement System (RTGS). Within this system the encoded cheques are exchanged and the original copies of the cheques are kept at the deposited branch, then the electonic version of the cheque's data is sent through the branch to the head office system.
  
• The system was activated on the 14-SEP-2006 for the main bank branches (Rafidain Bank, Rasheed Bank, Bank of Baghdad, Commercial Bank, Middle East Bank). The number of participants has increased since then, there are now more than 19 banks in addition to the CBI branches.
  
• CBI branches employee (in Basra, Erbil, Mosul, and Sulaimaniya) have been trained to install the system for bank's branches to facilitate the transaction processes within Iraq.
  
• The Electronic Clearing Cheque System is part of Automated Clearing House System. Its execution started with the Bank of Baghdad, the Middle East Bank, the Credit Bank, Dar El Salam Bank, the Commercial Bank, and the Trade Bank of Iraq. There are now 17 participant banks.
  
• It has been agreed with participant banks to also take on some of the responsability of their own training and be prepared for further testing environments.
  
• Training of Iraqi and foreign banks branches will be provided until full participation is achieved.
  

• The system manages the government securities issued by CBI and Ministry of Finance (MOF). Through this system the CBI has a greater control over liquidity. The system was activated in November 2008.
  
• The system manages the process of auctions for the issuance of government securities – Primary Markets.
  
• The system keeps the main recordes, including interest payments and repayment of the debts.
  
• The system handles the settlement of processes of government financial securities between the market and participating banks – Secondary Market.
  
• Saving and archiving processes.
  
• GSRS system connects with RTGS for completing the financial settlement operation on participant accounts in RTGS.
  
• The GSRS relates with C-ACH for presenting information on the status of collateral at the begining of each session.
  

Names of bank participants in IPS