Iraq is short on foreign remittances to curb the smuggling of money

Iraq is short on foreign remittances to curb the smuggling of money

Posted 06/07/2012 07:32 AM

BAGHDAD – Ali Naseer
varied reactions to monetary policy specialists with regard to the Iraqi Central Bank’s decision to close all banking offices is licensed from it, and restricting transfers of State banks. And supported the move and some experts saying that it came too late and should have been applied since 2003 to stop the smuggling of funds abroad, while others called for the imposition of electronic monitoring.

The Deputy Governor of the Central Bank of Iraq the appearance of favor in an interview to «life», that «tremors violent that hit the Iraqi market finally back predominantly to external reasons forced us to the adoption of mechanisms will increase our control over the market through private banks, governmental and corporate and banking offices» which «violated laws and gradually was able to carry out the functions of banks approved that was supposed to be implemented for the benefit of foreign remittances traders and industrialists, not only that but the banks have made to seclude itself and return itself to run local applications, which means that the situation is completely reversed ». He announced that the companies and banking offices spread wide and took advantage of being closest to the customers and the fastest in meet his demands ». Estimated the Iraqi foreign remittances abroad in order to meet the requirements of the trade balance for 2011 of more than $ 52 billion, two-thirds of the private sector.

He explained that the Central Bank licenses for 400 company and the Office of Banking in parts of Iraq, and directed the security agencies to close offices of unlicensed owners and referral to the competent legal authorities. He said: «currency auction mechanisms also changes her desk, after many problems in the market from fluctuating exchange rates and the financing of terrorism and money laundering. As we have noted the increasing demand for the dollar, and despite our demand for bills, we’ve got bills and fake banks ».

In regard to the new mechanisms, Saleh said: «Snjul government and private banks completion of the sale and purchase with the customer and foreign remittances, and we confine ourselves to oversight, which will be distributed to 25 banks of 49 waged, amounts of up to $ 220 million a day to sell».

She explained the parliamentary economic committee member Nora Salem Albjara it previously warned of the phenomenon of loose control over the movement of funds from Iraq to the outside and vice versa. It held that the Central Bank of the delay in the controls to control the funding of terrorism and money laundering. And demanded «Central» to increase control over the banking offices that some of them think that they are dealing with local customers and a few numbers, but experience has proved the contrary, it exercised the powers of banks large and are converting very large sums of money abroad without limitation or qualification.

Economic expert Imad Abboud believed that «the new system developed by the Central Bank will not be effective in the case of Iraq … And will remain dependent on the credibility of the private banks by providing a daily or weekly reports on the nature of transfers, and as the first had already been accused of being the second and bring the documents are not true, you’ll still adopt this method to transfer money without being offset by the supply of goods or services ».

However, the central bank defended its mechanisms, Saleh pointed out that he identified 25 banks committed to the laws of the 48 private banks, except government, which will be immune from censorship. He added: «Bank will give the bank any laws committed $ 1.25 million share incentive weekly outside controls, encourages them to deal credibility, and if the contrary is proven once and would be excluded from the mechanism of foreign remittances and that a strong deterrent and effective».
Source: altahreernews