Representatives: Intermediary companies selling currency not registered in the banking monitoring database

Obelisk - event as it happened

2021/04/28 12:07

  • The number of readings 217
  • Section : Iraq

Baghdad / Al-Masala: Member of Parliament, Representative Jamal Al-Muhammadawi, addressed a parliamentary question to the Governor of the Central Bank of Iraq on Wednesday April 28, 2021, regarding monitoring banks, banking companies and brokerage offices for the sale and purchase of foreign currencies.

According to a document issued by his office, Al-Muhammadawi said: Through the audit of the Federal Office of Financial Supervision, the data on the capital of private banks, it was noticed that there were a number of banks that did not increase their capital to 250 billion dinars, in contrast to the general directorate of banking and credit monitoring in 2013, and we mention some of these banks as an example. For example, Dar Al Salam Bank 150 billion dinars, Babylon Bank 178.859 billion dinars, Tigris and Euphrates Bank 100 billion dinars, and Islamic Cooperation Bank 144.481 billion dinars.

And he went on to say that the follow-up of the Office of Financial Supervision showed that the Central Bank’s instructions related to the sale and purchase of currency did not include anything indicating the follow-up of the commercial lists provided by private banks in exchange for imported goods that were covered by the funds, thus the central bank loses the control component of remittances.

He pointed out that there are no deterrent measures by the General Directorate of Banking Supervision regarding banks that refrain from paying the issuance of letters of guarantee for a specified period of time.

And he resumed saying that some companies were noticed to engage in brokering activities in selling currency in Baghdad, but they were not installed in the database of the Banking Supervision Directorate.

He continued that companies mediating in the sale of currency benefited from the issuance of the Banking Control Directorate to stop requests to grant branches to banks, which led to companies and offices taking advantage of the legal loophole.

Al-Muhammadawi was surprised by the suspension of the activity of mediation companies located in the governorates of Anbar and Nineveh, and the suspension did not include the other hot provinces of Salah al-Din and Diyala in 2016.

Al-Muhammadawi revealed that the company “Al-Lub to mediate the sale of currency” borrowed from the Iraqi Trade Bank an amount of 350 million dinars, or 70% of its capital of 500 million dinars, in contradiction to the law, in addition to the loan granted to the company before registering it with the Companies Registration Department.

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