The Central Bank of Iraq decided on Sunday to withdraw a license from an Islamic bank and liquidate it for violating the bank’s laws.
A source within the Central Bank told Al-Ghad Press that “on the violation of the Islamic Bank of Rawalh, and its violation of the principle of transparency and non-disclosure and provide incorrect information misled by the inspection committees of the Central Bank, and carried out false and fraudulent procedures on the capital of the bank submitted to obtain a license to practice the profession , The Central Bank decided, on the basis of Article (13/1 / A / C / D / E) and Article (71) (b) of the Banking Law No. (94) of 2004, to cancel the banking license granted to this bank Necessary legal procedures “.
The source said that “the bank will inform the registration of companies in the Ministry of Commerce, to mark this in their records, the Iraqi market for securities and all related parties, and the central bank will be the guardian of the bank for the purpose of liquidation.
On February 23, 2016, the Ministry of Commerce announced the change in the activity of six companies for financial transfer to Islamic banks, while confirming that the conversion of these companies was in accordance with the Islamic Banks Law and Companies Law No. 21 of 1997 and the approval of the Central Bank.
The activities of Islamic banks began in Iraq since 1993 when the first Islamic bank in Iraq was named (Islamic Bank of Iraq), while the number of banks that traded Islamic banking system (21) banks, including an external bank and another Gulf opened a branch in Iraq.
It is noteworthy that the banking system in Iraq consists of (54) banks as well as the Central Bank and distributed by ownership between (7) government banks and (23) private commercial banks, including (9) Islamic banks in addition to (15) branches of foreign banks.