“The Rate is Everything” – Fri. PM KTFA News Articles/Thoughts 7-1-22

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Samson » July 1st, 2022

Russia announces 70 banks joining a new financial system away from “SWIFT”

1st July, 2022

The Russian Central Bank announced that 70 foreign banks from 12 countries have joined the alternative Russian trading system for the global “Swift” network. 

The President of the Bank, Elvira Nabiullina, said that the Russian Central Bank will not disclose the list of these banks due to the fear of these banks that they will be affected by Western sanctions, for their dealings with the Russian financial system in light of the continued imposition of more sanctions by the European Union and the United States of America

She noted thatthe Central Bank of the Russian Federation adheres to the policy of floating the ruble exchange rate even in changing conditions, and attempts to achieve the exchange rate that was before will make it artificial.” “The managed exchange rate of the ruble will lead to a decrease in the independence of the monetary policy of the Russian Federation,” she added

She stated, “When we begin to manage the exchange rate, of course, the independence of monetary policy sharply decreases, that is, we are tied to the currencies of foreign countries. We are forced, with the regulated exchange rate, to synchronize monetary policy with the policies of countries linked to their currencies.” She stressed that the share of the Chinese yuan in the Russian economy is increasing

She pointed out that the Russian system for exchanging messages between banks “SBFS” is able to work as an alternative to the global “SWIFT” system. “We have also developed the internal financial infrastructure, and it will work smoothly, we have an SPFS dispatch system that can replace SWIFT within the country, and external participants can connect to it,” she added

When was the alternative Russian network for “Swift” created?

Russia created SPFS in 2014, when the United States threatened to expel Russia from SWIFT through sanctions. This system is an acronym for Financial Message Transfer System, and it drafts and processes standard formats for electronic banking messages or UFEBS documents and MT files as well

SPFS has integrated security measures that slow down its transactions and increase its financial costs as well. The regime carried out its first successful transaction in 2017, and now has more than 400 financial institutions in its network, and Russia is seeking to include its allies in this system. 

According to the Russian Central Bank, 20 percent of domestic transfers are currently made through SPFS, but message volume is limited and operations are limited to weekday hours

SWIFT is an acronym for Association for Global Interbank Financial Telecommunication, a company based in Brussels, and therefore subject to Belgian and European law. Founded in 1973, the company is one of the largest banking and financial correspondent networks, providing bank settlements between financial institutions around the world

A few days ago, the 27 European Union countries agreed at a summit in Brussels to exclude Sberbank, the largest bank in Russia, from the SWIFT system for international money transfers. This came as part of a sixth package of European sanctions against Moscow over its military operation in Ukraine

The Russian financial sector is facing difficult conditions

As part of her statements, the head of the Russian Central Bank revealed that the financial infrastructure of her country is working without malfunctions. She pointed out that the Russian system for exchanging messages between banks “SBFS” is able to work as an alternative to the global “SWIFT” system. 

But she reiterated that the Russian financial system and economy are facing a difficult situation, and the Central Bank will use any necessary solutions in this situation. “Our financial system and economy are now facing a very difficult situation, and the Bank of Russia will be very flexible in its approach to using any necessary tools,” she added

This comes as Western pressures and calls are growing to stop Russia’s use of the “SWIFT” system, a global messaging system between banks to facilitate transfers and payments. Western countries have adopted a new package of sanctions against Russia in response to the war on Ukraine, including the exclusion of a number of Russian banks from the international banking system “SWIFT”. The move is expected to further isolate Russia from the international financial system

Freezing assets worth $330 billion

In the context of Western sanctions, the United States of America and its allies have announced the freezing of Russian assets worth $330 billion since the start of the Russian-Ukrainian war. According to the US Treasury, Western allies have frozen $30 billion in assets owned by Russian wealthy or elites who are subject to sanctions

They also froze about $300 billion from the Russian Central Bank, according to a statement issued by the Western Allies’ Action Unit responsible for tracking the assets of Russian elites. Also, at least five luxury yachts and real estate owned or controlled by Russian nationals were seized and sanctioned

Earlier, Russian Finance Minister Anton Siluanov announced that the volume of gold and foreign exchange reserves of the Russian Central Bank, which was frozen due to Western sanctions, is about 300 billion dollars. He said, “That’s about half of the reserves that we had.

We have total reserves of about 640 billion dollars, and about 300 billion of them are now in a state where we can’t use them.

He stressed that Russia will not abandon its sovereign debt obligations, but will pay them in rubles until Western countries reverse the freezing of their gold and foreign exchange reserves, noting that this is acompletely fair” matter in the current circumstances

He noted that the West is pressuring China to limit Russia’s access to its yuan reserves, expressing his belief that “our partnership with China will continue to allow us not only to maintain the cooperation that we have achieved, but also to develop it in conditions in which Western markets are closed (in front of us).” 

He stressed that Russia has enough funds to guarantee the production of goods and conduct the necessary financial transactions, warning that sanctions against Russia will rebound later on those who impose them  LINK

Putin issues a decree to seize foreign energy companies in Russia.. This condition was imposed on them, and he gave them a month

1st July, 2022

On Friday, July 1, 2022, Russian President Vladimir Putin issued a decree allowing full control of foreign energy projects in Russia, including a project owned by British and Japanese companies.

According to the decree, Moscow can create a new company that will take ownership of the “Sakhalin 2” project, which is owned by 50% of the British “Shell”, “Mitsui” and the Japanese “Mitsubishi”. This step comes as the region suffers from an energy supply crisis due to the Russian attack on Ukraine four months ago.

Moscow attributed the reason for issuing this decree to what it described as “threats to Russia’s national interests and economic security.” The presidential decree gives foreign companies a “month” to decide whether they want to keep the same shares in the new company.

Japan was aware of Putin’s decree

It is noteworthy that the British “Shell” company owns 27.5% of the shares of the “Sakhalin 2” project, while the Japanese companies “Mitsui” and “Mitsubishi” own 12.5% and 10%, respectively, which in the end constitutes 50% of the ownership of the project. On the other hand, Shell responded in a statement, Friday, to Putin’s decision that it was “studying the repercussions of the decree,” noting that it “always worked in the best interests of the project,” according to the Associated Press.

For his part, Japanese Deputy Prime Minister Seiji Kihara told reporters Friday that his country’s government was aware of Putin’s decree and is currently studying its effects.

Kihara emphasized that the project should not be undermined because it is “closely related to Japan’s energy security,” adding that anything that harms the rights of his country’s resources is “unacceptable,” according to the agency.

The Sakhalin 2 project includes three offshore platforms, an onshore processing facility, 300 km of offshore pipelines, 1,600 km of onshore pipelines, an oil export terminal and a liquefied natural gas plant.  LINK

Source: Dinar Recaps


Samson » July 1st, 2022

Vietnam : Central bank sold roughly $7 billion to stabilise forex market

24th June, 2022

The State Bank of Việt Nam (SBV) sold about US$7 billion in the first five months of this year to balance the supply and demand sources of the greenback in the domestic forex market, according to the Viet Dragon Securities Corporation (VDSC).

The USD/VNĐ exchange rate listed at Vietcombank has so far this year increased by approximately 2 per cent.

The average rate of commercial banks according to Bloomberg’s statistics in the period has increased by about 1.7 per cent.

During May and the first half of June alone, the đồng depreciated about 1.0 per cent on the official market. However, in the context that most currencies have fallen significantly against the US dollar after the Federal Reserve raised interest rates, the đồng has remained relatively stable.

The US Dollar Index has so far this year risen by 9.2 per cent, resulting in the depreciation of many currencies. The Japanese yen has fallen by 16.8 per cent, followed by the British pound (11.5 per cent) and euro (8.5 per cent). The Chinese yuan has also dropped by 6.3 per cent, Indian rupee (5 per cent) and Malaysian Ringgit (6 per cent).

According to VDSC’s analysts, the domestic exchange rate might be under higher pressure at some times in the coming months, but the SBV will have enough resources to intervene and rebalance when necessary.

Việt Nam’s foreign exchange reserves are currently measured at more than US$100 billion, equal to 3.1 months of imports, and are forecast to keep rising.

The value, which is four times higher than in 2015, will be an important buffer to stabilise the domestic forex market and help the country’s economy withstand external shocks.

Though exchange rate management in the remaining months of the year is still a big challenge for the SBV, VDSC’s analysts believe that the đồng will not depreciate as strongly as other currencies as in the latest meeting this month, the SBV affirmed to continually manage the exchange rate flexibly and readily cope with greater pressure caused by external uncertainties in the near future.

Under the move, the VDSC’s analysts expect the đồng to depreciate only about 2.0-2.5 per cent in 2022, 1 percentage point higher than its forecast at the beginning of this year.

Earlier, Vietcombank Securities Company (VCBS) believed the USD/VNĐ exchange rate will increase by under 2 per cent in 2022. 

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VNĐ23,087 per dollar on Tuesday, down VNĐ5 from the previous day. With the current trading band of +/-3 per cent, the ceiling rate applicable to commercial banks during the day is VNĐ23,779 per dollar and the floor rate VNĐ22,394 per dollar. The rates at some commercial banks also dropped.

BIDV listed the buying rate at VNĐ23,100 per dollar and the selling rate at VNĐ23,380 per dollar, both down VNĐ10 from June 20. Meanwhile, Vietcombank kept both rates unchanged from June 20, listing the buying rate at VNĐ23,070 per dollar, and the selling rate at VNĐ23,380 per dollar. LINK

Global manufacturers gradually focus on Việt Nam

1st July, 2022

Many manufacturers in the global supply chain of major firms are gradually focusing on Việt Nam.

In particular, Apple has moved 11 factories of Taiwanese enterprises in its supply chain to Việt Nam.

Many other firms such as Foxconn, Luxshare, Pegatron, and Wistron are also expanding their production facilities in Việt Nam.

This information was shared at a conference on the situation and proposed tasks and solutions to remove difficulties and support production and business in the last six months of this year, organised by the Ministry of Planning and Investment this week.

Samsung built its largest research and development centre in Southeast Asia worth US$220 million in Hà Nội and is also planning to continue to expand factories in the northern provinces of Bắc Ninh and Thái Nguyên.

Earlier this year, Đồng Nai Province granted investment licences for two $100 million projects of a component supplier for Samsung, Hansol Electronics Việt Nam (South Korea).

To seize the opportunity, Đỗ Thị Thúy Hương, Vice President of the Việt Nam Association of Supporting Industries (VASI), proposed the Government have large-scale selective policies to attract big foreign groups to Việt Nam. However, these policies must be accompanied by “clean” production conditions, environmental protection and no discharge into the environment, she noted. Hương also recommended several issues, such as more supportive policies to improve labour quality and authorities needing to create more favourable conditions for businesses to access credit support policies of the Government.

Previously, Hương said that the root cause of the shifting trends of supply chains to Việt Nam largely came from China’s relatively developed electronics and information technology industry. She explained that they had grown to more than just assembling in the global supply chain.

Việt Nam was a country quite similar to China in electronic manufacturing activities, both in terms of labour and geographical location, infrastructure, and logistics and would be very suitable to receive capital flows, which was also a technological shift.

The VASI Vice President said that, regarding the attraction of large foreign companies, in the early stages, when domestic enterprises were still weak, FDI should be allowed in but must be regulated.

It was necessary to have the hand of the State not only to support foreign businesses but also to have an incubator to support Vietnamese businesses so that they were capable of receiving technology and gradually mastering the technology to have the ability to compete and keep in domestic market, she added. If enterprises were not strong enough, they could not protect their “soft resources,” which was their market, said Hương. LINK

Việt Nam’s GDP hits 10-year high of 7.72% in Q2

30th June, 2022

The Vietnamese economy expanded at 7.72 per cent in the second quarter of this year, the highest rate in the same quarters in the last 10 years, the General Statistics Office (GSO) reported at a press conference on Wednesday.

The figures for the same quarters in the last three years of 2019, 2020 and 2021 were 7.1 per cent, 0.52 per cent and 6.73 per cent, respectively.

In Q2 this year, the agriculture-forestry-fishery sector increased 3.02 per cent, contributing 4.56 per cent to the overall growth of the economy.

The industry and construction sector was up 8.87 per cent, making up 46.85 per cent, while the service sector rose by 8.56 per cent, contributing 48.59 per cent to the general GDP growth, Hương said.

Regarding GDP use, final consumption expenditure increased by 7.32 per cent over the same period last year; accumulated assets rose by 4.57 per cent; exports of goods and services surged 12.33 per cent; and imports of goods and services were up 4.88 per cent.

In the January – June period, the country’s GDP grew by 6.42 per cent, higher than the 2.04 per cent and 5.74 per cent growth rates of the same periods in 2020 and 2021, respectively.

According to GSO General Director Nguyễn Thị Hương, the country’s socio-economic development in the first six months of 2022 has prospered in most industries and fields, especially the processing and manufacturing industry; retail sales of consumer goods and services; and exports.

In terms of economic structure in the first two quarters, the agriculture-forestry-fishery sector accounted for 11.05 per cent of the country’s economy; the industry-construction and service sectors made up 39.3 per cent and 40.63 per cent, respectively, the GSO said.

CPI up 2.96 per cent in Q2

The Consumer Price Index (CPI) in the second quarter of 2022 posted a year-on-year rise of 2.96 per cent.

The office said CPI in June increased by 0.69 per cent month-on-month, up 3.18 per cent against December 2021 and up 3.37 per cent compared to the same period last year.

GSO General Director Nguyễn Thị Hương attributed the increase in CPI in Q2 to the continuous hikes in domestic petrol prices in tandem with world fuel prices, as well as the increase in the price of essential consumer goods and services in line with the price of input materials and transportation costs.

On average, in the first six months, CPI increased by 2.44 per cent over the same period last year; core inflation rose by 1.25 per cent.

The global commodity market continued to face fluctuations in the first half of 2022 and was influenced by economic and political factors, Hương said. “The world economy recovered, the demand for raw materials for production increased while the supply was interrupted, causing commodity prices on the international market to soar,” she said. “The tensions between Russia and Ukraine have pushed up the prices of raw materials and fuel and the world is at risk of a global food crisis,” she said.

In the second quarter of 2022, domestic petrol prices increased by 54.92 per cent over the same period last year, causing the overall CPI to increase by 1.98 percentage points. Domestic gas prices increased by 30.99 per cent over the same period last year, causing CPI to increase 0.45 percentage points.

The price of housing maintenance materials in Q2 went up by 7.81 per cent over the same period last year because the prices of cement, iron, steel and sand increased according to the price of input materials, causing the overall CPI to increase 0.16 percentage points.

The domestic price of rice also gained in line with the export prices of rice. In the second quarter, it increased by 1.07 per cent over the same period last year, causing the overall CPI to increase by 0.03 percentage points.

Besides the reasons for the increase in CPI, there are some reasons for the decrease in CPI in the second quarter of 2022, including the average pork prices down 18.6 per cent compared to last year due to the control of African swine fever and the guaranteed supply of pork, reducing CPI by 0.63 percentage points.

The fees of educational services in Q2 dropped by 2.86 per cent because a number of provinces and centrally-run cities exempted and reduced tuition fees from the first semester of the 2021-2022 school year due to the impact of the COVID-19 pandemic, causing CPI to decrease by 0.16 percentage points.

House rent in the second quarter of this year decreased by 12.33 per cent compared to last year because due to the COVID-19 pandemic, many landlords reduced rent to support tenants.   LINK

Việt Nam ASEAN’s second largest green bond issuer in 2021

22nd June, 2022

The Climate Bonds Initiatives (CBI) and HSBC have just released the ASEAN Sustainable Finance – State of the Market 2021 report.

Along with other countries in the region, Việt Nam’s sustainable debt capital market has experienced strong growth in the past year.

The report showed that the sustainable debt markets in the six largest ASEAN economies – Singapore, Thailand, Indonesia, Malaysia, the Philippines and Việt Nam – continues to grow rapidly in 2021. Issuance volumes of green, social and sustainability bonds (GSS) reached a record of US$24 billion, an increase of 76.5 per cent compared to $13.6 billion in 2020, while sustainability-linked debt surged 200 per cent over 2020 to $27.5 billion.  

The growth rate is said to reflect the positive sentiment of the ASEAN region in allocating capital for the purpose of responding to the COVID-19 pandemic, and supporting sustainable economic growth amid climate change and low carbon emissions in the long term. Việt Nam alone issued a total $1.5 billion of GSS in 2021, nearly five times higher than the value of $0.3 billion in 2020, which maintained stable growth for three consecutive years.

The majority of green bonds and loans in the country last year came from the transportation and energy sectors. Việt Nam is the second largest source of green debt issuance in ASEAN, after Singapore, according to the report.

The two largest transactions that account for most of Vietnamese GSS were $425 million of sustainability bonds with stock options from Vinpearl and a green loan worth $400 million from VinFast (value at the time of transaction announcement).  HSBC said that the country’s bond market has swelled over $70 billion in 2021. More than 80 per cent of the issuance was government bonds, while development banks were the second largest issuers.

At the end of 2020, the National Assembly passed the Law on Environmental Protection 2020 with some important amendments, including additional definitions, general requirements for green bonds and incentives for issuers. Việt Nam is also developing a classification system along with the law, which is expected to be enacted this year.

As Việt Nam announced its commitment to achieve net-zero emissions by 2050 at the COP26 conference, it will contribute to the stronger promotion of capital mobilisation through sustainable financial markets to accelerate the carbon emission reduction process. Tim Evans, General Director of HSBC Việt Nam, said that all forms of sustainable finance aim toward the common goal of supporting Việt Nam realise its target of achieving carbon neutrality by 2050, as committed.

Although the sustainable financial market is growing in Việt Nam and ASEAN, the need to mobilise funds to mitigate and help countries adapt to climate change is still very high, Evans added. Fundraising will support the transition to a low-carbon economy that is essential to achieve the Paris Agreement goals and ease the severe impacts of climate change for the ASEAN region and worldwide. However, experts also said that there is still a lot of work to be done for the ASEAN region to achieve the green growth target.

Some policies in the region have contributed to the rapid growth of sustainable finance in ASEAN and it is clear that awareness of climate risks has risen among both policy makers and investors, said Sean Kidney, CBI Director General.

Nevertheless, there is still a gap that needs to be filled soon. The sectors that emit a lot of emissions and find it difficult to change must quickly shift from “brown” to “green”. These are activities, assets and projects related to energy, heavy manufacturing and agriculture. “National initiatives such as Singapore’s Green Financial Industry Taskforce (GFIT) are a good start. However, we need to act faster to get vulnerable regions like ASEAN less affected by the consequences of climate change,” the CBI Director General said.   LINK

Source: Dinar Recaps


Samson » July 1st, 2022

Al-Rafidain participates in the largest financial exhibition in Iraq, which will start tomorrow

07/01/2022 10:55:33

Al-Rafidain Bank is preparing to participate in the Iraq Finance Conference and Exhibition, which will be held on the grounds of the Baghdad International Fair tomorrow, Saturday, and will last for 3 days.

The media office of the bank stated, in a statement, that the agency {Euphrates News} received a copy of it, that “this important event is one of the largest exhibitions in Iraq, and alongside Rafidain Bank, many banks and other financial companies will participate in an event organized annually and collecting expertise in the banking field.”

He pointed out, “This important financial forum in the banking sector is complementary to the activities of the Financial Inclusion Week, and the bank will present its many and varied products and services and marketing banking products to customers in this event, which aims to increase banking culture, open bank accounts, and promote small and medium enterprises for individuals, companies and other facilities, and everything else.” related to spreading the banking culture.  LINK

ATPInfinity » July 1st, 2022

the activities of the Financial Inclusion Week, and the bank will present its many and varied products and services … and everything else.  IMO THE RATE IS EVERYTHING ELSE!!!!!!

Al-Rafidain Bank is preparing to participate in the Iraq Finance Conference and Exhibition, which will be held on the grounds of the Baghdad International Fair tomorrow, Saturday, and will last for 3 days 

HAPPY 4TH OF JULY …DAY ONE.. DAY TWO …DAY THREE IS MONDAY

Samson » July 1st, 2022

Political analyst: internally and externally acceptable criteria for choosing the prime minister

06/30/2022 22:41:33

The political analyst, Haitham Al-Khazali, confirmed, on Thursday evening, the acceptability of the criteria for choosing the prime minister internally and externally.

Al-Khazali told Al-Furat News that: “The first episode in forming the government depends on choosing the president of the republic, and he will return to the Kurdish house. The other is to come up after the feast with one candidate to vote on internally, i.e. a repetition of the 2018 scenario

He referred to “setting criteria for the qualities of the prime minister; However, the names of the candidates for the position have not yet been presented, and I believe that the criteria are more reasonable and acceptable internally and externally.” 

Khazali added, “There are many challenges facing the current and subsequent government, but I think some threats are matched by some opportunities.

There is a financial abundance that can address the issue of the exchange rate and the economic situation, improving services and covering social welfare by increasing its entitlements and covering it with health insurance.

There is international and regional acceptance due to the presence of energy sources and corridors that call for calm down.”

He noted, “The political blocs now have a golden opportunity because of the financial abundance and international understanding of the government’s work and the stability of energy markets, with a rise in prices due to the Ukrainian-Russian war, and there are understandings between Baghdad and the countries of the region. I think that everyone will contribute to the success of the government, and we hope to take steps focused on serving the citizens.”

Mr. Al-Hakim called for giving priority to the public interest over private interests and the formation of a national service government capable of defining priorities and working to implement them according to an agile and short program. The head of the National State Forces Alliance also renewed his position not to participate in the next government, and to keep the role of wisdom limited to convergence of views between the political parties. LINK

DallasDude » July 1st, 2022

I won’t walk by this one..”A FINACIAL ABUNDANCE TO ADDRESS THE EXCHANGE RATE AND ECONOMIC SITUATION “..let the chips and timing of this fall where they may..

Khashan: The Election Law In Iraq Is Like A “Kleenex”

1st July, 2022

The independent deputy, Basem Khashan, described today, Friday, the election law in Iraq as a “Kleenex

Khashan wrote on Twitter, and Earth News followed him, saying, “The election law in Iraq is like the Kleenex, used for one time

Political reform does not begin without enacting a stable electoral law that enables the commission to be ready to hold elections in a maximum period of sixty days, in accordance with Article (64/second) of the constitution  LINK

Samson » July 1st, 2022

Oil prices fall on recession fears

1st July, 2022

Oil prices fell, today, Friday, as persistent fears of stagnating demand cast a shadow over sentiment and put the benchmark crude on track for its third consecutive weekly loss

Brent crude futures fell 20 cents, or 0.2%, to $108.83 a barrel, giving up gains of more than a dollar earlier in the session

West Texas Intermediate crude futures for August delivery fell 37 cents, or 0.4%, to $105.39 a barrel, giving up earlier gains during the session, which amounted to nearly a dollar

The OPEC + alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and independent producers, including Russia, agreed to adhere to the applied production policy after two days of meetings, but the alliance avoided discussing production policy from September onwards LINK

The Ministry of the Interior reveals the existence of families who rent their children to beg for 25 thousand dinars per day

30th June, 2022

Thursday, the Ministry of Interior identified three categories of beggars, while revealing that there are families who rent their children to beg for 25 thousand dinars per day.

The Director of Community Police at the Ministry, Brigadier General Ghaleb Al-Attiyah, said that “the phenomenon of begging has increased in Iraqi society, due to several reasons, the most important of which is domestic violence,” noting that “there are families who tempt their children to beg for 25 thousand dinars per day.”

He added that “there are three categories of beggars, the first includes the real poor, the second includes the youth group and their reasons are often psychological, and the third, which is the most dangerous, includes mafias and gangs that lead groups to beg,” noting that “according to statistics, the majority of beggars are from this category.” The first (the poor)”.

He stressed that “the security forces continue to pursue them if a gang for begging is arrested daily.”  LINK

The Central Bank : Implementing binding measures to combat money laundering and terrorist financing

1st July, 2022

The Central Bank of Iraq revealed, today, Friday, its measures in the field of combating money laundering and terrorist financing, confirming that it had also issued binding decisions in this regard.

The representative of the Anti-Money Laundering and Terrorist Financing Office in the Central Bank, Hussein Al-Mukarram, told the Iraqi News Agency (INA), that “Iraq’s procedures regarding combating money laundering and terrorist financing are represented in the issuance of the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015 and many regulations, instructions and controls. Circulars and guidelines in particular, all of which have been issued in light of international requirements and standards and in compliance with local requirements.

He added that “the identification of the supervisory and supervisory authorities on the business sector and the specific non-financial professions has been completed and the due diligence controls for combating money laundering and terrorist financing have been prepared for each sector, the last of which is the real estate sector.”

He stressed that “there are decisions that included obligating all financial institutions to form departments to report suspicious financial transactions and give them independence in their tasks, and to prepare a guide for policies and procedures to combat money laundering and terrorist financing in light of which work is carried out and to be available to all workers in financial institutions.”

He added, “The procedures also included obligating financial institutions to acquire electronic systems to combat money laundering and terrorist financing for the purpose of extrapolating the monitoring of suspicious financial operations and reporting them to the Anti-Money Laundering and Terrorist Financing Office,” noting that “Iraq is committed to all international requirements to combat money laundering and terrorist financing issued by the working group.” Finance (FATF), in addition to completing the conditions for joining the Egmont Group. He pointed out that “many specialized training courses have been held in combating money laundering and terrorist financing, combating financial crimes, penalties and bans, and employees of banking and non-banking financial institutions have been involved in them.”

And he indicated that “the measures taken by the Anti-Money Laundering and Terrorist Financing Office at the Central Bank of Iraq, including:

1. Acquisition of the (go-AML) system, which is concerned with receiving reports and financial data through electronic linkage with all the parties obligated to report.

2. Preparing systems and databases for the office, which includes data and information from other parties that help analysts to complete the financial investigation procedures 

3. Holding memoranda of bilateral cooperation with various parties within the anti-money laundering and terrorist financing system to facilitate the exchange of information, and concluding several memoranda of understanding with counterpart units in other countries similar to the work of the office.

4. Continuing to train employees of other sectors in ministries, government departments and the public sector for the purpose of spreading awareness of combating money laundering and terrorist financing based on the comprehensive training plan prepared by the office for this purpose, and the office continues to involve its employees in workshops and training courses offered by various organizations. 

He explained that “these procedures resulted in an increase in the number of suspicious financial transactions received by the Office from various entities obligated to report, which resulted in an increase in the reports submitted by the Office to the Public Prosecution Presidency to take the necessary action.

Regarding it, there were (15-25-34-24-39) reports during the years (2017 and 2021) respectively, and each report included a number of reports on a number of companies and people, and this increase was reflected in the issuance of a large number of convictions by the competent courts. 

He stressed that “the increase in the referred reports is a result of the measures taken to encourage financial institutions to report suspicious transactions and exchange information with law enforcement agencies, which contributed to the completion of the analysis of those transactions and the identification of suspicions of money laundering and terrorist financing.”  LINK

Source: Dinar Recaps

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