Currency smuggling.. Central Bank punishes 10 Iraqi banks due to foreign transfer violations
MP Baqir Al-Saadi confirmed today, Sunday, that the Central Bank of Iraq issued penalties against ten Iraqi banks due to violations related to the foreign transfers file, which has become a direct threat to the local economy.
Al-Saadi said in a statement to Al-Maalouma Agency, “The file of smuggling hard currency outside Iraq is still a source of great concern, amidst multiple question marks about the mechanisms for implementing these operations, especially with the ongoing investigations into the commission of serious violations by exchange offices and banks in foreign transfers.”
He added that "the penalties issued by the Central Bank against 10 banks so far come within the framework of reducing violations related to foreign transfers, which are considered one of the most prominent methods used to smuggle currency out of the country.
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Al-Saadi pointed out that “currency smuggling has serious effects on the local economy and causes an increase in financial crises in the country,” noting that “most of the transfers made for the purpose of smuggling go to one of the Gulf countries, which "Requires serious reconsideration and the implementation of strict measures to stop this ongoing bleeding."
The representative stressed that "the Iraqi Financial Institution is working seriously to address this problem by setting new criteria and re-evaluating the tools used in financial transactions, with the importance of revealing the results of the investigations to public opinion." link
In a recent announcement, Iraqi Minister for Financial Affairs Mzar Mohammad Sali underscored the significance of adopting the ASYCUDA (Automated SYstem for CUstoms DAta) system within the Iraqi Customs Administration.
This system, developed by the United Nations Conference on Trade and Development since the 1980s, utilizes modern digital technologies to streamline and expedite customs processes.
Sali highlighted that Iraq is now implementing the second generation of this system, leveraging cloud technology for comprehensive automation of customs operations, including data recording, fee assessment, customs clearance, and records management.
The initiative aligns with the Iraqi government’s objective to enhance non-oil revenues to account for 20% of total public revenues. In collaboration with the United Nations, the aim is to improve customs control and collection systems while optimizing import and export operations based on best digital practices. The minister noted that the General Authority of Customs and the Board Reports Authority successfully implemented the ASYCUDA system in the past year, establishing a high-quality digital infrastructure set to further develop customs operations by 2025.
Sali emphasized that the ASYCUDA system is instrumental in mitigating corruption by minimizing human interactions and transitioning to full automation, which enhances transparency and supports operational efficiency. Moreover, the system is poised to boost international trade by accelerating the customs clearance process and decreasing administrative hurdles. The creation of a comprehensive database will further assist in economic and trade policymaking. The ASYCUDA system also improves border security by enabling more accurate tracking and inspection of shipments, thus combating smuggling and other illegal activities. Sali concluded by noting that Iraq is joining a group of Arab nations, including Jordan, the United Arab Emirates, Saudi Arabia, and Egypt, that are implementing the ASYCUDA system in their customs processes.
Highlights
🚀 Accelerated Customs Operations: The ASYCUDA system significantly speeds up the customs clearance process, facilitating international trade.
🌐 Cloud Technology Adoption: Iraq’s implementation of the second generation of ASYCUDA relies on cloud technology for comprehensive automation.
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Boosting Non-Oil Revenues: The government aims for non-oil revenues to constitute 20% of total public revenues, aligning with the ASYCUDA initiative.
🔒 Enhanced Border Security: The system improves tracking and inspection capabilities, aiding in the fight against smuggling and illegal activities.
📊 Comprehensive Data Management: ASYCUDA creates a robust database that supports informed economic and trade policymaking.
💡 Corruption Reduction: Full automation minimizes human interaction, increasing transparency and operational efficiency within customs.
🤝 Regional Collaboration: Iraq joins other Arab nations in adopting ASYCUDA, fostering a regional approach to modernized customs processes.
Key Insights
📉 Reduction in Delays: The ASYCUDA system is set to drastically reduce delays at border crossings, which has been a significant bottleneck for trade in Iraq. By automating customs operations, the system allows for faster processing of shipments, which can lead to increased trade volume and improved economic activity. This efficiency can position Iraq as a more attractive destination for international business and investment.
🔍 Improved Customs Control: The collaboration with the United Nations aims not only to enhance revenue collection but also to improve the overall control of customs operations. This aligns with global best practices, ensuring that Iraq’s customs administration meets international standards. This improvement in governance can potentially restore confidence among international traders and investors.
🌍 International Trade Facilitation: By streamlining customs processes and reducing administrative hurdles, ASYCUDA plays a pivotal role in facilitating international trade. The ability to clear goods more quickly can enhance Iraq’s competitiveness in the global market, enabling local businesses to reach international customers more effectively and at a reduced cost.
📅 Future-Proofing Customs Operations: The commitment to developing a high-quality digital infrastructure by 2025 indicates a forward-thinking approach. This infrastructure will not only support current customs operations but also allow for future enhancements and scalability as trade volumes grow and technology evolves.
📉 Combating Corruption: The reduction of human interaction through automation is a critical component in the fight against corruption within customs processes. By decreasing opportunities for corrupt practices, the ASYCUDA system promotes a more transparent and fair trade environment. This can lead to increased trust from both citizens and businesses in the integrity of the customs administration.
🔄 Economic and Trade Policymaking: The comprehensive database generated by ASYCUDA provides valuable insights that can inform economic and trade policies. Policymakers can leverage this data to make evidence-based decisions, enhancing the effectiveness of trade regulations and economic strategies.
🌐 Regional Integration: Iraq’s adoption of ASYCUDA places it within a framework of regional cooperation among Arab countries. This integration can lead to more synchronized customs operations across borders, improving trade relations and reducing complications for businesses that operate in multiple countries.
In summary, the adoption of the ASYCUDA system in Iraqi customs represents a significant step forward in modernizing trade processes, enhancing revenue collection, and fostering a more secure and efficient trading environment. The government’s commitment to integrating advanced technology into customs operations aligns with broader goals of economic development and regional collaboration, ultimately benefiting both the Iraqi economy and its international trade relationships.
Central Bank Renews Directive to Spread and Expand Financial Services and ATMs
The Central Bank of Iraq renewed, on Sunday, a directive to banks and non-banking financial institutions to spread and expand their financial services in areas that lack the presence of various services for bank card holders.
The Central Bank said in a statement received by "Al-Eqtisad News" that "the bank is working within its strategy to provide various services to bank cardholders, by expanding the spread of cash delivery outlets and through all available channels, including ATMs and POC cash payment devices, as well as authorized exchange companies, electronic payment company outlets, and POS electronic payment devices spread throughout Iraq."
The statement added, "The Central Bank confirms in its circulars that included directing banks and non-banking financial institutions to spread and expand their financial services in areas that lack the aforementioned services.
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He continued, "The bank seeks to develop these services by establishing the latest infrastructure for financial products and services in Iraq, and improving them continuously," calling for "submitting inquiries and complaints, if any, through the following link: https://complaint.app.cbi.iq/."link
[Discussing photo of an unknown lower note sent to Frank]
SENDER:What's that [note] underneath it [photo of the known 250 and 500 dinar notes]?
FRANK: I don't know what that is. Where did you get this?
SENDER: It's from a contractor in Iraq...
FRANK: It's not just because of the color I see there, it's the packaging that attracts my attention.
SENDER: My buddy said he got the pictures from his interpreter friend who goes out on patrols with him daily. The interpreter's brother works in a very small bank...He had to pay the brother three bottles of Old Spice cologne in order to get this picture to him.
SENDER: I guess they can't get it over there, pretty valuable. The brother said they have pallets of the smaller bills there in the vault but they haven't released them yet to anyone. I guess he could get in serious trouble if they found out he took this picture.
FRANK: So I'm understanding this correctly, your friend who's a contractor, his interpreter has a friend at a bank and he took a picture and he smuggled them out and he gave them to your friend and your friend gave them to you?
SENDER: Exactly.
FRANK: It had three qualifications but the one that got me was the packaging.
National Data Center, Customs And Border Ports Authority Announce Launch Of Customs Automation System
Sunday 12 January 2025 | Economic Number of readings: 198 Baghdad / NINA / The National Data Center at the General Secretariat of the Council of Ministers announced the launch of the "ASYCUDA" system in cooperation with the General Authority of Customs and the Border Ports Authority, in ten land, sea and air border ports, after conducting a comprehensive assessment of the infrastructure in 14 border ports, within the framework of supporting the government's program for digital transformation and automation of customs operations in Iraq.
Director of the National Data Center Department, Ammar Mazhar Al-Tamimi, stressed that the success of operating the system reflects the exceptional efforts made to develop the infrastructure supporting customs automation, pointing to the government's commitment to the success of this vital project that contributes to enhancing the efficiency of customs operations and achieving transparency.
Al-Tamimi pointed out, according to a statement by the Secretariat of the Council of Ministers, that the efforts included providing the General Authority of Customs with modern technical equipment, in addition to establishing a secure network system based on advanced servers and firewalls, with the allocation of a separate environment to ensure data security and link the system to the secure government network. "
In a related context, the General Authority of Customs in the Ministry of Finance and the Border Ports Authority, with the support of the National Data Center, continue to work on expanding the scope of the system to include additional ports, including Basra International Airport, Khor Al-Zubair Port, and Abu Flus Port, which are scheduled to be operational in the coming months."
The customs automation project aims to raise the efficiency of customs performance and facilitate the movement of goods in line with international standards, in a qualitative step to support the national economy and improve the business environment in Iraq. " https://ninanews.com/Website/News/Details?key=1179572
Tasks of the Directorate of Supervision of Non-Banking Financial Institutions
1- An introductory overview of the directorate: The Directorate of Supervision of Non-Banking Financial Institutions at the Central Bank of Iraq is responsible for licensing, supervision and control of non-banking financial institutions, with the aim of protecting the financial system from potential risks and enhancing confidence in the non-banking financial sector. It also seeks to ensure the provision of safe and effective financial services to citizens, in addition to ensuring that these institutions comply with laws and instructions in accordance with global standards in the field of compliance, which contributes to enhancing financial stability. 2- The directorate’s powers and tasks: - Licensing non-banking financial institutions. All license applications are carefully examined in accordance with the principle of equality between all applications, in order to ensure the availability of conditions that allow it to compete in the Iraqi market and keep pace with rapid developments in the global and local financial sectors, while achieving the highest levels of efficiency and transparency.
- Supervision and control of non-banking financial institutions. This directorate acts as a supervisory authority, adopting a flexible and contemporary supervisory approach that enables it to carry out supervision and monitoring to ensure success in the Iraqi financial sector. 3- Laws, regulations and instructions. Central Bank of Iraq Law (Link to PDF). Anti-Money Laundering and Terrorist Financing Law No. 3 of 2015 (Link to PDF).
Electronic Payment Services System No. 2 of 2024 (Link to PDF). Work regulations for agents of foreign remittance service providers for the year 2021 (Link to PDF). Operating controls for exchange companies (Link to PDF). Regulations for the work of financing companies (Link to PDF). 4- Types of non-banking financial institutions. A- Types of non-banking financial institutions Electronic payment companies (redirect link to the electronic payment companies page). Exchange companies (redirect link to the exchange companies page). Finance companies (redirect link to the finance companies page).
B- Licensing requirements and controls for each type. Electronic payment companies (Link to Page). Exchange companies (Link to page). Finance companies (Link to page). 5- Control and inspection procedures. Oversight methodologies and inspection mechanisms (Link to PDF).
Periodic reports required from institutions. Requirements for appointments to leadership positions (Link to PDF). 6- Reports and publications. 7- Advertisements 8- Updates related to laws and instructions. 9- Workshops and training courses. 10- Communication channels. 11- The official mail of the directorate. The Directorate’s email ( nbfi.supervision@cbi.iq ). The official email of the Exchange Companies Control Department (Company.sup@cbi.iq) . The official mail of the Finance Companies Control Department. The official email of the Electronic Payment Service Providers Monitoring Department (electronicpay.bs@cbi.iq) https://cbi.iq/news/view/2759
[Reply to Guru Bruce's higher contract rate on dinar post on 1-12-2025 below]
...There is no "contract Rate" except for the people who have pre-2011 Private Purchase Contracts. If you do not have such a contract, you WILL NOT get a contract rate. Contract Rates are not paid by banks but rather by the contractor.
This is Dinar Mythology and there exists NO PROOF of any such contract rate. If you want to go into the bank and sound like an idiot, then be my guest. Everyone will get exactly the same rate due to "The Law of One Price".
This can be verified. You must ask yourself how you might get a "contract Rate" without a contract? However, the banks may well have varying rates on the exchange fee but that is generally around 2%.
Central Bank Renews Directive To Spread And Expand Financial Services And Atms
Banks Economy News – Baghdad The Central Bank of Iraq renewed, on Sunday, a directive to banks and non-banking financial institutions to spread and expand their financial services in areas that lack the presence of various services for bank card holders. The Central Bank said in a statement received by "Al-Eqtisad News" that "the bank is working within its strategy to provide various services to bank cardholders, by expanding the spread of cash delivery outlets and through all available channels, including ATMs and POC cash payment devices, as well as authorized exchange companies, electronic payment company outlets, and POS electronic payment devices spread throughout Iraq." The statement added, "The Central Bank confirms in its circulars that included directing banks and non-banking financial institutions to spread and expand their financial services in areas that lack the aforementioned services."
He continued, "The bank seeks to develop these services by establishing the latest infrastructure for financial products and services in Iraq, and improving them continuously," calling for "submitting inquiries and complaints, if any, through the following link: https://complaint.app.cbi.iq/." 79 views Added 2025/01/12 - https://economy-news.net/content.php?id=51858
Chat owner Was told by London sources that the new rate in country would be posted on FOREX today but as yet have not seen them, we are dlose folks say your prayers.
During 2024.. The Iraqi Central Bank Imposes Fines Worth 279 Billion Dinars On Banks And Money Changers
Economy 2025-01-11 23:52 Shafaq News/ The Central Bank of Iraq announced, on Sunday, the imposition of fines on banks and non-banking institutions (exchange companies) worth 279 billion Iraqi dinars, during the year 2024. A table of the bank, viewed by Shafaq News Agency, showed that the fines imposed on banks and financial companies during the past year amounted to 279 billion and 144 million and 977 thousand and 628 dinars, indicating that “the fines also included 238 administrative penalties for these banks and non-banking institutions, distributed between warning and warning.” And the grace period.”
The table showed that “the month of January witnessed the highest fines on banks and non-financial institutions, as these fines amounted to 98 billion, 277 million, 722 thousand and 62 dinars, with administrative penalties amounting to 17 penalties, while the month of September witnessed the lowest fines, as they amounted to 2 billion, 331 million, 465 thousand and 48 dinars in penalties.” Administrative penalties amounted to 13.”
The table did not show the names of the banks on which fines were imposed, nor the nature of the administrative penalties. The Association of Investors in the Iraqi Stock Exchange criticized the Central Bank of Iraq's increase in fines on banks, noting that it would affect the profitability of investors in the shares of these banks. https://shafaq.com/ar/اقتصـاد/خلال-2024-المركزي-العراقي-يفرض-غرامات-بقيمة-279-مليار-دينار-على-مصارف-وصيرفات
The second reading of the budget law is done. Now it can be put to vote as reported earlier in December this can be put to vote after 2 readings unlike the 3 readings necessary.
This is the last hurdle I was looking to be cleared before anything happened on the currency http://front.It was done with out fan fare. Let's see when it is put to vote.sooner than later is my guess.
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#BREAKING: The Iraqi Parliament has completed the second reading of the Federal Budget Law amendment, which seeks to break the oil export deadlock in the Kurdistan Region, halted since March 2023.
The amendment focuses on addressing production and transportation costs for oil companies in the region’s fields, according to Iraqi-Kurdish lawmaker Briyar Rashid.
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good Monday morning MarkZ, mods and RV’ers
Member: And another week begins!!!!!!!!!!!!!!!!!!!
Member: MarkZ!! Brent Crude 80.47 Texas time 8:43!! Let's RV!! Isn't this what we are waiting on??
Member: Could this be our week?
MZ: That’s a great question. I know a number of bond contacts are suddenly convinced that this is our week. They had been afraid it would be after the inauguration….but are now hearing they could get their 1% before…..then 9% a week or two after. Then they set up traunches (payments) for the balance.
Member: I wonder if when bonds get their 1% if we get our notifications?
Member: Will we have full access to all our funds when we exchange Mark?
MZ: Yes…I am told we will have full access on currency exchanges
MZ: Groups are pretty quiet so far today. I do know that a couple bankers have meetings this afternoon. These are members of “Wealth Management”
Member: MM is pretty excited
MZ: There has been fantastic news. Now we just need that to translate into dollars for us all.
Member: Rumors out there: HCL got approved in the parliament with the Green light to start And tonight they are updating the payment system in Iraq from 12:00 - 2:00 am
Member: I would be willing to bet that the HCL is done, we are just waiting for an event. Will be so glad when this is all over.
Member: Disappointed about the lack of quorum.
MZ: Yes we were told the Iraqi parliament did not get a quorum to do the second reading of HCL. Yet. But they do expect it tomorrow. It could be misinformation…..but that is not what I hear from the Iraqi Press right now.
Member: "Breaking the quorum" .. A demand to publish the names of those absent from the Iraqi parliament session”
Member: MarkZ, I find it curious that Tonight, Iraq is shutting down for 2 hrs, their electronic payment system!
Member: Zoom News announced that tonight at Midnight Iraq time, the payment system will shut down for updates.
MZ: They are updating their electronic systems specifically for borders and customs …this is a scheduled update. They are using the AYUSCUDA system for all their borders.
Member: "2025 budget is on the verge of legislation, and delaying the schedules will not stop the decision" - Jamal Kojer
Member: Zoom news Baghdad: The Iraqi Parliament has completed the second reading of the Federal Budget Law amendment which seeks to break the oil export deadlock with the Kurdistan Region halted since March of 2023
MZ: they are posting opposite/opposing articles…they do it on purpose to cloud the timing…...so thanks for that one. .
Member: Iraq loves smoke and mirrors.
Member: where there is smoke there has to be fire?
MZ: “Will Trump strengthen the US presence in Iraq instead of withdrawing?” The US needs to project strength in the region. Their best bet is to work closely with Iraq , who is becoming a leader in the region. I believe he will be working with the Iraqi government- not against them.
Member: Informed political source revealed, on Saturday evening, an upcoming visit by the envoy of the US President-elect, Donald Trump, to Iraq, carrying message to Prime Minister Mohammed Shia al-Sudani.
Member: Trump said Iraq talks differently privately then they do publically.
MZ: Absolutely. It is a mind set difference all throughout the Arab world.
Member: My Wells Fargo finally confirmed the RV.
MZ: They all know its coming…..They know we are having a complete change in the system and we are going asset backed…They know gold is an important piece. Im not sure if they will use the same terminology you and I use or will they call it something different?
Member: They may not call it a QFS…..but we know what the new system does….safer and faster and much better.
Member: What is your gut feeling Mark?
MZ: My gut is screaming sometime between now and Jan 22. Just a guess……
Member: If the RV doesn't happen before February this year I will be really surprised!
Member: Why does the finish line keep moving further away every week?
Member: Maybe the finish line isn’t moving…..maybe we are waiting for the starting line to begin next Monday on Jan 20th?
Member: I have my currencies & receipts in a fireproof bag, ready to go, LOL
Member: Hope everyone has a great day today!
Member: Thanks so much Mods Mark and friends....Stay positive as the best is yet to come.
