BondLady] 1st and foremost...my sincere respect, admiration and gratitude goes to our timmy for all her diligence and her work she put in reading the new banking and investment laws she discovered passed on 11/18/12 i believe that was the date and it was gazetted into law...ty so much timmy.... she has did the work of reading through the massive laws for us and pulled parts from it for us

[BondLady] no 1 has even realised or even has even a small clue on just how big and important these laws were to us and iraqs banking and investments...i appreciate u all so much...and hope u all too see the hugeness of these things passed and unearthed by our timmy...again ty so much....BondLady

[BondLady] now before timmy starts to bring in the laws or parts from them if any one has a comment they would like to make before we start breakin down the laws  please do so now

[Shredd] i do

 [BondLady] and they will be copied also unless u say not to  ok ty

[tlm724] i do as well
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Read More Link On Right

[Shredd] Ok, lemme just start with this statement, and this is very important for everyone in this investment to understand until the banking laws are set, so much cannot happen in Iraq.

[Shredd] For any economic growth to happen, protection for investors and their investment funds must be in place. Fires don’t get put out in regards to investments, they burn the structures to the ground! Fires must be avoided.

[Shredd] Basel III compliance which is a global regulatory standard on bank capital adequacy, stress testing and market liquidity risk must be in place.  Anti-money laundering (AML), Know Your Customer (KYC) and all controls to mitigate counterfeiting must be in place.   Investor perception on the level of safety in investing in Iraq is imperative and until that happens, we won’t see action. So, to see the banking laws in the gazette is huge….it’s the opening of the “door.”

[Shredd] I manage massive portfolios up to a trillion dollars in size and work with all the big names you can think of and so many more, so I know what I’m talkin about! This is great "behind the scenes" work that was DONE  go ahead miss T

[tlm724] Shredd ty

[grashopa] lets do this by section.......ie: Banking Laws..............Company Laws.....Labor Laws.....etc.

[tlm724] I want to take a moment to thank each of you . We have an awesome team and you have all taught me so much and given your time and knowledge freely, I am honored to be among you. I also want to thank grashopa for helping me find and understand so many things, you will never know how much you have helped me !

But most of all I want to say to you BondLady, that my little star could not begin to shine without you, you have blazed the trail for us to follow and have set the standard for truth and dedication. I am humbled by your faith in me and will always be grateful for your guidance and friendship. Thank you.

[grashopa] awww.....ty Timmy

[Shredd] imo, it's easy for the typical investor to only focus on what will directly bring an increase in the rate of the dinar, but please understand this is the foundation that Iraq's economy will be built on.

[Shredd] you see, for any economy to fourish, debt must be invested in in other words, lending and borrowing this is the case for Iraq and all investments need the foundational backing of financial institutions, i.e., banks and the banking is governed by these laws we have the SEC here and just for investment, there are many laws, six primary ones tho and they protect investors  investment firms this is standard and we all know the investment world is watching iraq closely

[BondLady] ok lets begin with the bringing in the parts of the laws i'll leave it to timmy as to which parts she starts with and we will all have a chance to put in our comments in this round table discussions of them

[Shredd] ok

[BondLady] timmy when you’re ready

[tlm724] here is the link to all that will be discussed http://www.iraq-lg-law.org/en

[tlm724] Banking Law Article 2 Regulatory objectives 1. The primary regulatory objective of this Law is to maintain confidence in the banking system. Other regulatory objectives include those of promoting public understanding of the banking system by providing appropriate information, maintaining an appropriate degree of protection for depositors, and helping to reduce financial crime, including fraud, money-laundering and terrorist financing.

[Shredd] key words here: confidence in banking system providing protection for who? depositors..... lemme expain that piece really quick.... for any bank, the number one source of income is NII, nor Net Interest Income makin money off deposits so this is foundational and very important!

[grashopa] this only bonifies all that Shabs was doing in London, Dubai, Germany and Japan..............these laws OPEN the door with confidence

[therealbubbie] the one thing that stands out to me in the banking law is this ..1. The capital of a domestic bank shall be specified in dinars. A bank shall at all times maintain minimum paid-up capital that is not less than 10 billion dinars or such higher amount as may be established by the CBI. Existing banks must reach this capital within 18 months of the effective date of this order shall be specified in dinars

[BondLady] by providing transparency is key here...so many of them never know what the right hand is doing per the left...this is saying we're being transparent about everything, we want you to be satisfied with our work and we want to be satisfied with yours....and its also showing stability to the people and to the country and the international world of investors who wish to invest in iraq.... and showing they will be no coruption and will be totally open and forthright

[tlm724] this is just an FYI : Article 40 Financial year The financial year of domestic banks shall begin on January 1 and end on December 31 the same year. For a branch of a foreign bank, the financial year may differ.

[tlm724] Article 5 License application g. a business plan setting out the business objectives and types of activities envisaged for the proposed bank, including a description of its organizational structure and internal control systems (including adequate measures to counter money-laundering and terrorist financing as defined in the Anti-Money Laundering Law of 2004 (AML)) together with projected balance sheets, profit and loss accounts and cash flow statements for the next three full financial years;

[BondLady] this law i have waited to see for well over 2 yrs when shabibi 1st talked about it saying it had to be in place before any new money or rate adjustment could ever happen  this counterfitting law and money laundry law had to be done

[Shredd] precisely

[BondLady] iraq has to send a VERY clear STATEMENT and send a strong one to the world..this is the new Iraq and corruption in the banks and within the investments and the banks will not be tolerated and by passing this law its going to hold all the forgers counterfitters and money launders accountable

[BondLady] this had to be done before we could ever see a real change in the rates values imo it took them this long for it to pass and its truly a clear signal imo to the world iraq will not stop from trying to bring the corrupt and the ones who hurt iraq and its economy by money laundry and counterfitting the currency

[Shredd] i agree, these laws had to be finalized first

[BondLady] exactly any other comments per this?

[tlm724] Article 13 Revocation of banking license or permit f. the bank, or the foreign bank or bank holding company of which the bank is a subsidiary, or a subsidiary of the bank, has engaged in criminal activities constituting fraud, money-laundering or terrorist financing;

[tlm724] Article 21 Disclosure of personal interest 1. Each administrator or senior bank official shall disclose in full to the board of directors any significant personal financial interests, directly or indirectly, that the administrator or senior bank official may have. Each also must disclose the same information for other individuals in the administrator’s or senior bank official’s household. Subject to paragraph (2) of this article, such written disclosures shall be made by the administrator or senior bank official upon appointment or election, and annually thereafter, in accordance with guidelines adopted by the bank and pursuant to any regulations issued by the CBI.      comments please

[Shredd] this is the motivation behind a bank staying in compliance with these laws  the bank i work for has had some stiff penalties it had to pay in years past because of some money laundering that slipped through the cracks and we paid dearly for it  this is telling us that the banks and individuals have responsibilities the same goes for us and all banks

[tlm724] Article 26 General banking principles 3. The CBI shall, by regulation, prescribe detailed standards of conduct for banks which the CBI shall apply in its prudential supervision in accordance with international standards and best practices.   international standards       comments

[Shredd] a good example of an international standard is KYC know your customer which is.... best practices around onboarding a new client doing research on their company their financials their history again, making sure safety and risk mitigation are at the top of the list

[Shredd] one last comment on this T.... this also spans to interbank administration meaning, the rest of the global banking sector and it's interfacing with Iraqi banks..... the minimum standars of one bank may be greater than the other  so, the Iraqi banks will have to meet those requirements  that's all, ty

[tlm724] Article 29 Prudential requirements 2. In particular, banks shall establish and apply internal policies on prudential ratios governing: d. prohibitions, restrictions or conditions concerning: (i) the types or forms of credits and investments made, and liabilities assumed (contingent or otherwise); (ii) matching as to maturity and interest in respect of assets and liabilities (contingent or otherwise); and (iii) unhedged positions, exceeding a specified ratio, in foreign currencies or precious metals; exchange and interest rate instruments; stocks and other transferable securities; and forward contracts, swap agreements, futures, options, and other derivatives relating to currencies, stocks, bonds, precious metals or interest rates.   [tlm724] comments

[Shredd] ok, a lot of pieces to this one.......

[BondLady] this is just awesome  yes there is

[Shredd] ok, so prohibitions, restrictions or conditions for the investment vehicles listed......  in a nutshell, this is spelling out that the full spectrum of investment vehicles are covered under this Iraqi investment law  which is awesome!  this gives us a glimpse. of what types of investment Iraq will be a part of.....

[BondLady] swap agreements in other words make deals and contracts whether it’s in currencies or precious metals gold, silver etc...and what interest rates and profits are to be had through this and how they will be divided

[Shredd] unhedged positions,swaps on the higher risk investment side....

[BondLady] clearly opening the doors of transparency and showing iraq is all about making money for the investor and for iraq

[Shredd] stocks, bonds, options.....safer investments so, this covers investor diversity!

[BondLady] done on my end

[Shredd] yes, great point on the transparency Bondlady   i agree... that is the theme here and we saw that being a requirement loud and clear after the financial crisis

[therealbubbie] and that investors will be protected !

[Shredd] investors all said they want to be clear on what they invest in yes bubbie, protection

[BondLady] all of these laws they are wanting the world to see that too no more being secretive, were ready to show you our hand so show us yours and we can work together as a team for the good of the investors who took the chance and risk on iraq and for the people who trust the leaders of iraqs cbi to guard and protect the peoples monies and investments

[tlm724] Article 35 Suspicious transactions 1. If a bank or any of its administrators, officers or employees learns that the execution of any banking transaction or the receipt or payment of any sum of money pertains or may pertain to any crime or illegal act, the bank shall immediately notify the appropriate official or judicial authority to this effect. The bank shall inform the CBI on a monthly basis about suspicious transaction reports submitted, if any, and concerning any need for additional action regarding this matter.   comments

[Shredd] Bondlady, correct, and guess what's next? A internationally recognized currency

[BondLady] see where they say..."if any" they want u to know there won’t be any   absolutley shred

[grashopa] RE: Transparency..... Article 42 Principles for accounting and preparation of financial statements   1. Banks shall:

 a. maintain proper books and records required for orderly operations in accordance with the provisions set out in Article 38;

b. apply accountancy rules and systems in conformity with international accounting standards (IAS), including the use of full accrual accounting on a daily basis, and in compliance with any special requirements stipulated by the CBI in this regard; and

c. prepare its financial statements comprising the balance sheet, profit and loss account, cash flow statement and statement of changes in the bank’s capital account in an adequate manner that reflects the reality of the financial positions of the bank and its branches. The financial statements shall be prepared in accordance with international accounting standards (IAS) and in compliance with any special requirements stipulated by the CBI in this regard. The financial statements shall give a true and fair view of the state of affairs of the bank and shall include a statement on the bank’s internal control systems.

 2. Banks shall comply with any regulations or orders issued by the CBI with respect to the rules set out in paragraph (1). The CBI shall issue, by regulation, provisions on the accounting system and rules applicable to banks.

[tlm724] ty grashopa

[Shredd] this article is exactly what we have to adhere to in the US

[tlm724] and if there is any section or article that you want to discuss please feel free to bring it

[BondLady] these laws are truly opening the door to go international with their currency and there country, thier preparing to come out of chapter 7 and become a major player in the world of huge big finance

[therealbubbie] Article 26 General banking principles... 8. The CBI may provide guidance, including by means of establishing rules for good business conduct, or specify by regulation rules to ensure the banks’ good relations with their depositors and customers.

[therealbubbie] cbi saying you can trust us now !

[BondLady] yeppers and what a statement to make coming from 1 of the very most corrupt countries in the world

[therealbubbie] good relations with their depositors and customers.

[Shredd] right

[grashopa] Article 44 Publication of financial statements

1. A bank shall publish, in two newspapers of general circulation, its audited financial statements, including audited consolidated financial statements, if applicable, not later than four months after the end of the financial year.

2. Each bank shall display in a prominent location at its head office and its branches its most recent audited financial statements, including audited consolidated financial statements, if applicable, and a list of the names of the members of its board of directors.

[BondLady] and they want as bubbies pointed out for all the investors to pay and pay employees in iraq with iraqs currency not usd

[therealbubbie] hey people of iraq put your money with us and not under a mattress !

[BondLady] right

[Shredd] right, and imo "big, bad Maliki" don't want to keep on using his babysitter's currency forever

[BondLady] and for the citizens to put trust once again in the banks  as shabibi set everything in motion for all this to come about these are shabibis laws they would not pass while shabibi was still in iraq

[BondLady] these laws were his foundation

[therealbubbie] hey world come and invest in the New Iraq

[BondLady] and he set it all on a firm foundation to weather any storm that could come at them through there economy, private sector and banks when he 1st passed what they call the "telephone law"

[Shredd] ah yes, that's right

[BondLady] he said 3/4 of the people didn't know how to use a bank account or to make a bank account but they all had cell phones and knew how to use them and through the public announcements and through the big screens set up all over iraq...the cbi and the goi and all officials will be able to walk them through step by step using their cell phones to do all of their banking needs....  done

PART 2 LINK