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Iraqi News Monday AM  2-1-21

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The Judiciary Exposes The Currency Auction With Surprising Information

Time: 02/01/2021 10:04:04 Read: 5,902 times   {Baghdad: Al Furat News} The judiciary revealed that an investigation into the auction of foreign currency sale to the Central Bank of Iraq had reached an advanced stage, “revealing” surprising information about it.

In the wake of the recent economic repercussions in the country, and after a generalization directed by the Supreme Judicial Council, the investigation court specialized in combating money laundering began conducting an investigation regarding one of the most important pillars affecting the national economy inherent in the (foreign currency sale auction) and following up on the violations of some private banks of the law jointly in the auction of foreign currency, where the competent judge said that the investigation has reached the advanced stages of detection of illegal operations and fraud and forgery to participate in the auction sale of the currency and the smuggling of foreign currency outside the country is causing great damage to the Iraqi economy and the impact on the people.

in turn , has taken court Investigation of the Rusafa specializing in issues of integrity, money laundering and economic crime, on the twenty-fourth of last December, legal procedures against thirteen private banks from entering the currency auction through their customers without submitting customs permits supporting the entry of goods and without being held accountable for tax.

The court mentioned issued decisions to bring directors authorized banks offense due to breach of due diligence procedures imposed by the Anti – Money Laundering Act and the financing of terrorism No. (39) for the year 2015 stating that it was taking legal action against all dealers offenders with banks.

Laundering money and its impact On the national economy in light of the recent economic repercussions and the concurrent judicial procedures, the Judicial Development Institute organized on Monday January 18, 2021 a seminar entitled (Money laundering crimes and their impact on the national economy) in which the first judge of the Rusafa investigation court specialized in cases Integrity, money laundering and economic crime Yad Mohsen Damad, and it witnessed the presence of a group of economists, legal experts, university professors and media professionals.

The workshop reviewed four axes that began with the role of the judiciary in implementing Iraq’s international obligations, followed by a discussion of the formation of a money laundering investigation court and its procedures by considering cases related to the same aspect.

Examples of judgments issued as well as media dealing with money laundering cases and its impact on procedures were also reviewed. Investigation and trial. The workshop concluded by referring to the role of the judiciary in combating the crime of money laundering and its great role in removing Iraq from the list of high-risk countries.

The judge of the Rusafa Investigation Court had presented during the statistical workshop for the work of the court from 2017 to 2020, which amounted to (604) cases referred to the misdemeanor and felony courts in the same matter.

It also reviewed the total amounts of financial fines imposed on banks and other financial institutions from 2015 to 2020, which amounted to (535) billion Iraqi dinars related to bank violations, in addition to presenting the value of funds confiscated and withheld as a result of legal procedures in money laundering cases before courts, which amounted to more than four billion nine hundred and eighty – seven million ID.

Following this was for ( the judiciary) pause with the judge ‘s first court of inquiry competent Rusafa integrity issues, money laundering and economic crime Iyad Muhsin ligature, began addressing the recent workshop and the goal of I established it in these circumstances specifically, as he spoke:

The main goal of this workshop , which was launched under the guidance of the Supreme Judicial Council is to clarify the role of the Iraqi judiciary in the fight against the crime of money laundering levels:

international, where the Supreme Judicial Council to provide an essential contribution to the fight against money laundering file in Iraq to the Financial Action Organization (FATF) to contribute effectively to remove Iraq from the list of high – risk countries (black list) and transferred to the white list.

this came after it carried out Iraq (49) of the recommendations imposed by the Organization (FATF international) and became under that within the ranks of countries Advanced in the field of combating money laundering.

The workshop to attend statistical issues resolved by the competent court, classification and review of the funds that have been frozen and the funds that were confiscated and the funds withheld as provided, as well as the review of the financial amounts imposed by the judiciary and the Central Bank of the banks that have entered the currency auction and did not abide by the regulations.

* At the same side (The judiciary) directed Judge Iyad Mohsen Damad several questions related to the content of (judicial procedures against those causing damage to the national economy), which began with the results of the court competent to look into cases of integrity, money laundering and economic crime from the results of the judicial procedures against private banks announced by the Judicial Council The highest in late 2020 about taking legal action against thirteen of them for entering the currency auction through their customers without submitting customs permits supporting the entry of goods and without being held accountable for tax?

Judge ligature replied:

Shall those banks violated the due diligence concerning the law against money laundering No. (39) for the year 2015 also violated the instructions of the Central Bank in relation to the entry of banks and their customers to sell the currency auction.

I would also like to note that they were not the first time In which the court takes measures against a group of private banks, since 2008, legal measures have been taken against private banks that have registered violations in the currency auction, where a number of authorized managers and employees have been referred to the competent courts for committing legal violations and errors regarding financial transfers

They carried out it was not in exchange for real commercial business, as it was observed that the purpose of these transfers was to pay the sums of imports for which goods were supposed to enter the country, but they transferred sums abroad without receiving any goods.

The central bank instructed banks are obliged to ask its customers to bring permits Kmarkip and a tax charge for anyone who violates those instructions from the banks , the judiciary has taken legal action against him at the level of the investigation have been forwarded to the courts of misdemeanors and felonies.

In addition to the large fines imposed by the Central Bank of Iraq against those banks Violation and meeting the differences in exchange rates thereof The court also imposed a set of confiscation provisions and fines against those violating banks.

As for the merits of the case, it lies in the arrival of a report from a member of Parliament stating that some of the banks that entered the currency auction since 2017 are lagging in their obligations, as he stated in his communication that some of the auction entry operations are aimed at smuggling and not for commercial or economic purposes.

In parallel, the court received a report from the Central Bank supporting the report of the aforementioned deputy, and as a result the court requested the names of the violating banks, as it was provided with a list of thirteen private banks, followed by the court requesting the names of the companies and customers who entered the currency auction through that Banks and obtained them as well, and the court directed questions to the two public authorities for taxes and customs related to those names and their presence with them.

Where the General Tax Authority answered the court’s question related to its being taxed with it in the negative, indicating that it was not taxed. The Court also got an answer to the General Authority for Customs whether those names have introduced goods to meet the funds transferred abroad by her to confirm the absence of the index in its database stating the entry of goods for such transfers.

That the evidence was sufficient to take legal action against the banks, we asked Following them, the names of the authorized directors of each bank, and after they were received by us, the court issued arrest warrants and recruitment decisions against them.

The court also proceeded to take legal measures against all companies and customers who entered the currency auction and transferred money without bringing goods for it. The court has gone a long way with the investigation procedures for this aspect.

Added to say that every decision would be taken by the court in accordance with legal evidence available and in accordance with the fundamentalist procedures drawn by the assets of the Iraqi Code of Criminal Procedure.

– Is it possible to witness the Iraqi street closed judicial proceedings on the impact of private banks in the light of the results of the investigation?

– It is not within the powers of the investigating judge that the Criminal Procedures Law drawn up and drawn up by the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015 to close a bank on the background of violations he commits. The court cannot exceed the powers specified for it by law.

Because the process of closing banks, stopping their work, or placing them under the recommendation is considered financial and administrative decisions that are made exclusively by the Central Bank of Iraq with the administrative, financial and economic control powers it has granted to it under the Iraqi Central Bank Law and the Anti-Money Laundering and Terrorism Financing Law No. (39) for the year 2015. In light of this, the Central Bank can direct financial and administrative penalties against violating banks. It can also suspend its work, as well as declare the bank bankrupt and place it under recommendation and initiate liquidation or rehabilitation procedures.

As for the court, according to the aforementioned law, it has the powers to seize funds that may constitute the proceeds of original crimes or through which money laundering operations are conducted. Here, I stress that it is not within the powers of the court to suspend a bank from work or cancel its license. As we deal in accordance with the existing legal frameworks.

Fruitful initiative , Dr.Adnan al- Saraj , head of the Iraqi Center for Development and Media was his active participation in the workshop , during which he made a number of proposals, made for ( the judiciary) , a speech in which he said

that the organization of the Supreme Judicial Council for educational workshops and seminars on the economic aspect of deepening the judiciary look at media, particularly in respect of the crime of money laundering , which was the focus of the workshop hosted by the Supreme Judicial Council.

It is known that the most grave impact on the Iraqi economy is the crime of money laundering and we Kmokhtchin observers appreciate the great role played by the Iraqi judiciary to limit those The crime is through his competent court and its strict procedures, and he is counted for his tireless efforts that resulted in the removal of the Financial Action Organization (FATF) Iraq from the list of high-risk countries (the black list).

With regard to the aspect itself pointed out that the judicial proceedings were strict accordance with the laws relating to economic crime , but our observations stand on the implementation by the competent authorities, which we have several indicators on the performance.

Regarding the recent judicial proceedings , which coincided with the economic consequences suffered by the market We refer to its clarity through direct guidance to the President of the Supreme Judicial Council to take all legal measures against everyone who causes harm to the national economy, whether by foreign currency dealers or monopolistic merchants of goods and food commodities and the necessary commodities that citizens need daily, and here we stand at the role of the executive authorities with regard to the diagnosis of these violations and referred to the judiciary.

consistent performance from recent judicial proceedings concurrent with the repercussions of the financial crisis was for ( the judiciary) and pause with the economic expert on behalf of Jamil Anton , who said:

Certainly the law when they are activated following up the manipulators currency and monopolists of the market will play a major role to limit those violations to be the performance of the executive body consistent with judicial decisions.

As the follow – up and coordination with the executive bodies and in the central vanguard bank and customs will substantially to reduce this phenomenon , provided that the deal according to specific without foundations to create the sensitivity of the market on their impact resulting negative reaction lead to a contraction

  1. Speaking about the judicial aspect of the economy , said Anton said experts and specialists believe the Iraqi economy and its role Bakdhaina The big one who plays him in serving the nation and being keen on its economy, and therefore I say that the judiciary should raise more than the economic levels of its apparatus by intensifying courses and workshops specialized in the economic aspect and making them more effective, specifically targeting judges and investigators.

Legal solutions and in his answer to our question related to the issue of currency auction and its repercussions, which economists and financial experts see as harmed the national economy and the Iraqi dinar collapsed because of it? Anton indicated that there are legal solutions that can be used to deter this phenomenon, as he stated:

The auction selling the currency is one of the factors developed in the Iraqi market, where in the past time there was a special department concerned with controlling the external transfer, but for more than 17 years the Iraqi market has been in a state of openness in terms of import and currency circulation, as a result of which the holder of the dinar became the owner of the dollar American, considering that our country is running a market economy.

Therefore, it is necessary to change the outlet of the uncontrolled market economy and move towards a social market economy that limits the phenomenon of domination and control of monopolists, manipulators and smugglers of currency, and here the judiciary plays its role by activating laws that end this phenomenon, as happened with the decisions of its council late last year.

Also, importing through the banking system as it was in the past, the use of documentary credits (LC) and control of external transfer, as well as cooperation with the Border Ports Authority, issuance of customs declaration and import licenses, with an annual import approach, will greatly reduce this phenomenon. Provided that there is a match between the sums sold through the single window in the currency auction and the goods entering customs through all border outlets and preventing irregular border outlets, as well as controlling them with the Kurdistan region, and if this matter is achieved, then there will be a match between the sums sold in the auction

The currency and the goods that enter according to the customs declaration and the banking system, which in turn will then be far from the influences of the influential, since what is happening now is that the prices of goods have been subjected to a great disparity with the entry of China as a basic economic power that exercises its role by influencing the global pricing of goods and thus we have distinguished between the goods The good and the bad.As the control of that process must be in accordance with permanent follow-up and the judiciary monitor.

As for the issue of the sudden devaluation of the Iraqi dinar, it is certain that it has created problems in the Iraqi market as a result of external and internal debts and obligations between wholesalers and retailers as well as the treatment drugs are also affected by this matter. So it must be Tsairtha privacy and prove according to the price controlled by the state in order to Aaahram citizen to receive treatment due to the high price.   LINK

Deputy: The Rise In The Dollar’s Exchange Rate Weakened The Citizen’s Purchasing Power

Pratha News Agency87 2021-02-01   The head of the Rafidain Parliamentary Bloc, Yonadam Kanna, confirmed that economic development in the budget was cornered on the shelf, while noting that raising the dollar exchange rate weakened the citizen’s purchasing power by 23%.

Kanna said in a press interview, “Efforts are continuing to resolve the budget during the next few days in order to vote on it, after completing most of the points in it.”

Indicating that “what is related to the price of the dinar against the dollar in the budget is a matter unlikely to reduce it within the budget despite the difficulty of adopting them at this time to reduce the exchange rate to 1300 dinars per dollar, given that what happened was a big mistake in that jump and the citizen paid for it and remains The decision is for money and cash experts. ” Suspect

Kanna added, “The jump that took place in the dollar’sprice in its early days greatly benefited some of the banks affiliated with parties, but at the same time, the citizen was greatly affected, as the citizen’s purchasing power decreased by 23%, contrary to what the government said about not harming the citizen’s income.

Pointing out that “the exchange rate is a financial policy, not monetary. It was assumed that the government and the Ministry of Finance would not intervene in this matter, and that the decision was entrusted to monetary experts in Iraq, and not as happened.”

He pointed out that “there are three important development policies, which are the financial, monetary and economic policy, and we believe that the economy is on the shelf and there are eight important sectors for development that are left and neglected in the budget: agriculture, industry, health, water resources, education, transportation and housing, which represent 16% of the budget in exchange for the oil sector.”

Electricity was given 20%, and the security and defense sector was 1% more than the eight developmental sectors, with the addition of culture, which is a fatal mistake and lack of economic vision that greatly damaged the economy and the Iraqi citizen.

To Address The Crisis And Relieve Pressure On Public Spending … Proposals And Solutions To Economic Imbalances

Monday 01st February 2021 84  Baghdad: Haider al-Rubaie and Shukran al-Fatlawi  Economic specialists have identified a number of imbalances that the Iraqi economy suffers from, putting at the forefront of the increase in inflation rates and the rise in the number of unemployed, stressing the need to devise serious solutions that lead to the revitalization of the private sector, and activate it with immediate steps that enable it to reduce pressure on the state’s public spending.

Inflation rates

The economic expert, Manaf Al-Sayegh, explained during his speech to Al-Sabah that “the recent economic measures related to changing the exchange rate of the dinar against the dollar have resulted in an increase in the prices of various commodities and materials, especially imported ones, and have led to a decrease in the incomes of individuals.”

Al-Sayegh pointed out that there are problems as a result of inflation, which began to occur due to the reduction in the exchange rate of the Iraqi dinar, as this inflation is expected to reach 10 percent, describing that rise if it occurs as a “killer” of the actual purchasing value of the dinar, as well as “erosion.” The purchasing value of the currency, up to 21 percent.

Stressing that these indicators “high rates of inflation and the erosion of the value of the dinar” put us in front of serious expectations and negative results in the event that the budget is approved with its recommendations that came by the government, as cases of high inflation rates, an increase in poverty rates and the erosion of the purchasing power will lead to a major depression in the economy, and paralysis of activity Economic, and thus will generate non-social repercussions  Benign.

Suggestions and solutions

The jeweler suggested a number of remedies to get out of the crisis afflicting the Iraqi economy, calling for meetings between decision-makers in the Iraqi government and economic specialists in order to find quick solutions to the economic crisis, indicating that these solutions should not include “circumventing” the salaries of employees or workers in state institutions,

As far as its reliance on devising serious and rapid solutions that lead to economic activity in the private sector, and to do it quickly and with clear steps, and stimulate economic movement in the country, which will lead to reducing pressure on state public spending, reducing unemployment rates and achieving additional revenues, due to the presence of economic activity, And to provide real services to citizens.

The dominance of oil

For his part, the economic expert, Dr. Abd al-Rahim al-Shaddud al-Ta’i, in his speech to “Al-Sabah” attributed the imbalance of the country’s economic structure to the dominance of the oil sector over all commodity sectors, whether in terms of its revenues that constitute more than 90 percent of or through the labor force in This Sector.

He pointed out that “the economy suffers from structural problems that have impeded it since the discovery of oil and its export, and with the presence of large economic resources, the decline is still striking the economy for decades, as previous policies were short of addressing these problems that the economy suffers from, which is characterized by declining structures.”  Substratum ”.

Lack of investment

Al-Shadd explained that “the collapse of the focal structures in the economy, which included the sectors of energy, electricity, water, transportation and public services systems, resulted from the mismanagement of these facilities and the lack of investments to maintain and maintain the energies available in them to match the growing demand resulting from the population growth during the past decades.”

Al-Shaddd suggested the need to balance the structure of the economy, arrange its priorities and develop the production base, especially the capital and transformational industry, as it is noted that food industries dominate the manufacturing industries, as they constitute (17 percent) of the total manufacturing industries.  LINK

A Parliamentary Call To Expand The Work Of The Iraqi Banking Services Company

Monday 01st February 2021  59  Baghdad: Morning The Investment Sub-Committee of the Parliamentary Economic and Investment Committee called on the Ministry of Finance to provide the necessary support to the Iraqi Banking Services Company (one of the Ministry of Finance formations) to maintain its work in a manner that ensures the achievement of its banking and monitoring objectives on the movement of funds between all governorates.

The head of the Investment Sub-Committee, MP Riad Al-Tamimi, said in a statement that Al-Sabah received a copy of: “The company has been able during the past years to double the efficiency of its work and achieve unprecedented financial returns to the state treasury and turn into a profitable company.”

Al-Tamimi pointed out the volume of the company’s work and the progress it has achieved in the field of electronic governance in its technical work, and the adoption of the monitoring system for the fortified shuttles via satellites and the GPS system in the movement of money between Baghdad and the provinces, as well as updating its fleet of Money transport trolleys, making it one of the leading companies in the field her job .

The committee chairman called on the Ministry of Finance to support the company to expand its work further and develop its mechanisms to activate the automatic teller service and electronic payment, to keep pace with the latest developments in the banking field.   LINK

A Global Company That “Takes Care” Of Port Security … And “Automation” Is Taking Effect

Monday 01st February 2021  171  Baghdad: Shatha Al-Janabi   It seems that the government’s measures to tighten the screws on the spoilers and arranging the ports file have begun to be realized, through the announcement of the General Company for Iraqi Ports to contract with a global security company to improve security aspects, combat corruption operations and preserve the customs campus from the abuse operations in an effort to raise revenues to the desired level.

During the past year, Prime Minister Mustafa Al-Kazemi launched a campaign to protect the ports in Basra Governorate by military forces within the framework of the strategy (combating corruption at border crossings). He stressed that “the customs compound will be under the protection of the security forces and they have the right to fire on every trespasser.” Of the complex routine procedures, and work to rotate employees to reduce spoilers ».

The director of the General Company for Iraqi Ports, Farhan Muhaisen Al-Fartousi, revealed to “Al-Sabah” that “a contract with a specialized international security company works to manage ports, improve the security aspect, and control any operations around which suspicions of corruption hover.”

He stressed that “the next two months will witness the completion of security preparedness to protect the ports, and the authorities charged with this will fully conduct their work.”

And the revenues of the General Company for Ports of Iraq rose after last June from 6 billion dinars per month, up to 50 billion dinars during last November, and announced that the average monthly revenue during the past six months ranged between 46-47 billion dinars.

According to Al-Fartousi, a security survey has been practiced at Khor Al-Zubair port, as part of the security code procedures, which are one of the requirements of the (SOLO) agreement of the International Maritime Organization, which must be applied smoothly and control the entry and exit of trucks and containers and their accurate handling.

The director of the company added that “the ports have begun to introduce electronic governance and move from providing administrative services by manual, traditional methods that rely on large numbers of employees, to an electronic method by exploiting the means and tools provided by modern technology to reduce time, effort and integrity of operations and bypass the negatives of traditional paper management.

It is expected that the (automation) project in the ports will end at the end of this year by switching to the electronic link between the company’s headquarters, port administrations and security agencies, reaching all customs outlets and carrying out other logistical work with the control authorities and controlling them inside the port, as it was recently announced that the percentage of its completion is between 50-100% for some paragraphs and under the guidance and follow-up of the Prime Minister.

The ports have worked within the joint operating company with the two companies (Raya and Minaret Umm Qasr) to implement the electronic transformation project in all the company’s facilities.

On the other hand, the Finance Committee in the House of Representatives expected that the revenues of the ports would rise in the coming months to 12 trillion dinars and would jump to the fore after oil imports to supplement the federal budget that suffers a large deficit, after moving this file by the Prime Minister.

While the financial advisor to the prime minister, Mazhar Muhammad Salih, stated that “non-oil revenues are still between 6-7 percent of the total budget revenues, but this government approach will make it rise by at least 25 percent, foremost of which are taxes and federal fees that are collected correctly and according to progress. Electronic estimation, inventory and appraisal systems for imported goods, to be approved by the border outlets and their customs agencies.   LINK 

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