Banking in Iraq: ignorance of the laws and money laundering without sergeant

Banking in Iraq: ignorance of the laws and money laundering without sergeant

Published 10/02/2013 09:10 AM

Babinaoz – handsome as: at a time when Iraqi banks retardation banking technologies adopted by the its financial transactions, spreading banking offices in the cities of Iraq Interestingly, due to the preparation of the many and spread random, according to a financial expert Jafar al-Zubaidi, who is due phenomenon to the absence of laws that governing the work of this office, and to the lack of oversight.

And is intended to be Zubaidi say small offices that do not have legal licenses, and managed by illiterate in the banking and financial issues, and finds that many of them back to people who do not have the academic qualifications, despite the seriousness of their work on the country’s economic security.

Zubaidi confirms that there are some offices run by people sentenced and misdemeanors involving moral turpitude, and affiliated to the senses, and they were involved theft from banks and financial banks after 2003, which allowed a lot of money laundering through these offices.

Banking secrecy and money smuggling

Laws require open banking offices capital of 500 million Iraqi dinars, or about half a million dollars, as well as other conditions. Zubaidi is believed that each office in Iraq banking secrecy makes its mysterious, the state can not in this situation financial knowledge of its activities specifically, what contributes to money laundering and the smuggling of hard currency and the fluctuating price of the Iraqi dinar against the dollar.

Although these offices to facilitate daily dealings citizens, but the harm to the economy is too large because a lot of illicit financial activities conducted through her window.

Imad Hassan, the owner of banking office in Karbala, these offices are based in its work on the transfer of funds to and from Iraq, and where the dollar is the master of the situation. He adds: “The fact it’s a big loss-sometimes because of the fluctuation of the value of the dollar and the unstable security situation and internal political conflicts.”

However influx of visitors from outside Iraq to Karbala and the holy cities, the importance of these banks increased in these areas, more than anywhere else, and the Iraqi expatriates residing abroad, are counting a lot on these offices, as are activities financial through and not through formal banks, As growing banking business in times of religious holidays and occasions.

Security reasons

Says cream Aljcami, an expert in banking, the role of banking offices is very important at the present time, as it resorted to the owners of capital and traders and industrialists to move money through it for security reasons, after the numerous kidnappings of people who are traveling with their money with them.

In 2007, he was Hatem Abdullah was mugged on his way to the shop from the city of Diwaniya to Baghdad, when his car was stopped on the international road in the morning several people They faced arms face forced him to hand over possession of the money.

Has not delivered banking offices also acts of armed robbery, according to a police officer Amin Jumaili which confirms that the security authorities often reinforce security measures around these offices.

The exchange circulating profession, especially everything related to financial remittances, in Iraq after 2003, but that these financial events carried out by people in their homes, not be subject to Iraqi laws in all practiced acts.

And aware of the Iraqi Central Bank this problem, which is tried by the laws in force to organize the work of banking. According to the Bank, the banking companies registered and approved before the year 2003 was only 300 companies, but their number exceeds thousands at the present time.

Adulteration and trading

Confirms Fadel Flaih, Rasheed Bank, it’s supposed to be a practitioner of this profession of leaves Azarunha in situations inspection, stressing that mostly depends on bribing staff and officials to continue their work without licenses.

For his part, accused the merchant Hamid Hussein also some banking offices fraud and trafficking in counterfeit currency. In 2005, Hussein was the victim of fraud about two thousand dollars through a currency traffickers. Hussain acknowledges that formal and discreet offices fear for their reputation, but it’s a lot of fake companies that take the market turmoil and the security situation and a way to profit-taking.