[tlm724] Article 46 Audit 1. Each bank shall appoint an independent external auditor with qualifications and experience in the audit of banks acceptable to the CBI. The external auditor shall be appointed by the bank’s shareholders at the general meeting of shareholders, provided that if the bank fails to appoint an auditor satisfactory to the CBI, the CBI shall appoint such auditor.
[tlm724] Article 47 Additional duties d. certify whether or not adequate measures to prevent money-laundering or terrorist financing have been adopted by the bank and are being implemented in accordance with such regulations, orders and guidelines issued by the CBI.
[BondLady] i've pretty much included my comments from above to this.... any one else?
[Shredd] this is a good article.... we use external auditors and what this does, is ensures compliance with all the laws to say you comply with a law is one thing
[therealbubbie] Each bank shall appoint an independent external auditor with qualifications and experience in the audit of banks acceptable to the CBI... can't have unle shabi do the audit
Read More Link On Right
[Shredd] but to have a qualified external auditor attest to it is a big deal so, this is a great article because it says they will comply with what is law not just say they will a big difference from the goi
[tlm724] Article 51 Exceptions c. actions taken in good faith in the course of the performance of duties or responsibilities imposed by this Law or in the implementation of measures countering money-laundering and terrorist financing pursuant to regulations of the CBI;
[tlm724] Article 56 Prompt corrective action and administrative penalties
1. The CBI may take any measure or impose any administrative penalty stipulated in paragraph
(2) of this article in cases where it is evident that a bank, an administrator of a bank or any other person: a. violated the provisions of law or any regulation or order issued by the CBI; b. conducted unsafe or unsound banking operations
[Shredd] this looks like one we saw earlier, but again, showing penalties will be enforced if not in compliance
[BondLady] yes if you steal if you rob if you forge if you try to hurt our economy and our banks any more than you already have iraq will not stand for it you will be brought to justice before a iraqi court of your peers and you will be held accountable pretty heavy stuff
[grashopa] when we get to the Company Law part.......it explains in more detail
[BondLady] for some reason they don't mind blowing themselevs up but if they have to stand before a court and a judge and jury it freaks them out they don't want no part of it...they would rather die than to face the people for there crimes
[Shredd] it has to be, if soft, they won’t attract investment
[tlm724] Article 57 Illegal banking business 1. Each person who engages in banking activities as a business without a banking license or permit issued by the CBI is guilty of an indictable offense and liable to the penalty for fraud contained in the Penal Code. 2. The penal courts shall be responsible for hearing actions initiated by the public prosecutor based on the request of the CBI or any concerned party.
[tlm724] Article 59 Grounds for appointment of a conservator 2. The CBI may appoint a conservator for a bank when the CBI determines that:
c. there is evidence that the bank or any of its administrators have engaged in criminal activities punishable by imprisonment of one year or more or there is reasonable cause to believe that the bank or any of its administrators are engaging in such criminal activities.
h. 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 as defined in the Anti-Money Laundering Act of 2004;
[BondLady] i've already gave mine above
[grashopa] and......in the Company Law section............it explains the penalties
[Shredd] the first one is huge...there will not be any off the wall entity engaging in banking......only those approved by the CBI
[BondLady] we will get to that shortly gh ty
[Shredd] we continue to see a heavy oversight by the CBI throughout this all.....
[therealbubbie] now you can understand why maliki wanted to take over the cbi !
[Shredd] the second article is huge too....gives you a snapshot of the penalty
[Shredd] puts teeth to this dog
[BondLady] 1 last part per this quote....or a subsidiary of the bank, has engaged in criminal activities constituting fraud, money-laundering or terrorist financing as defined in the Anti-Money Laundering Act of 2004; .....see this is setting them up for being removed from ch 7.....or terrorist financing as defined in the Anti-Money Laundering Act of 2004;
[BondLady] giving their word to fight terrorism and not fund it either
[tlm724] any final comments on the Banking Law?
[therealbubbie] Banking Law is huge !
[BondLady] its very huge and anyone who didn't think this law was important is totally clueless imo
[tlm724] we will move on to the Company Law
[tlm724] my thoughts on the Company law. Think London, Berlin, Tokyo , iraq begging for investors, companies to be formed by these foreign nations to rebuild Iraq and help establish a prosperous iraq .
Now these foreign companies and investors would need specific laws in order to open or operate. without them no country or company would consider it. This law establish's the rules for forming companies, ie.. board of directors, stock offering regulations ,protecting the rights of creditors and investors etc...
More importantly it deals with "financial investment companies which are companies organized in Iraq whose main activity is to direct savings toward investment in Iraqi financial securities, including shares, bonds, treasury bills and fixed deposits".
[tlm724] Company Law Article 1: The objectives of this law are to.
1. organize companies;
2. protect creditors from fraud;
3. protect shareholders from conflicts of interest and related abuses by company officials, majority owners, and others with practical control over the affairs of the company; and
4. promote the provision of full information to owners in connection with decisions affecting their investment and their company.”
[grashopa] Article 3: This law applies to mixed and private companies and to all investors. Its provisions shall apply to banks to the extent they do not conflict with Coalition Provisional Authority (CPA) Orders
[Shredd] protect shareholders from conflicts of interest and related abuses by company officials, majority owners, and others with practical control over the affairs of the company; this is a big one... lemme explain quick... in many investment vehicles, in many securitized debt instruments there are levels of investment from investors
[Shredd] they invest in different "tranches" or levels of debt based on their risk appetite and diversification parameters/goals so, this article is protecting these holders from not only company officials abuses but majority owners...that's key
[Shredd] so, that's like if the top tranche of investors decide to control a company's debt instrument the little guys like the stock holders will be protected
[Shredd] this, again, is spelling SAFETY TRANSPARENCY PROTECTION LOW RISK which is this "door" being opened that we are trying to show you all
[tlm724] Article 4: First: The company is a contract binding two or more persons. Each person shall subscribe to the economic project by a quota of the capital or service in order to share the resulting profit or loss.
Third: Owners of capital in a company may not exercise their voting or other authority in the company to cause it to do or consent to acts that:
1. harm or disadvantage the company to benefit themselves or those associated with them at the expense of other owners of the company; or
2. jeopardize the rights of creditors by causing withdrawal of capital or transfer of assets when insolvency is imminent or when prohibited by law. Article 5: The company shall acquire the corporate status in accordance with the provisions of this law.
[Shredd] ok, lemme explain this one... many may think "company" means a business but in the investment world, an investment structure is incorporated
[BondLady] this again is showing if you bring your buisness to iraq, we will make sure your monies are safe, we will make sure you get your profits on time, we are here to insure your buisness experiance in iraq will be a safe and fruitful one....
[Shredd] and so this is speaking to that.......that causes for withdrawal of capital are addressed when capital is withdrawn on an investment, even by one investor, it will collapse the investment
[Shredd] so, this is a bit granular, but it is really spelling out what investors are looking for....this depth of protection deeper than the common peeps would understand
[tlm724] Article 9: First: The Financial Investment Company is a company organized in Iraq whose main activity is to direct savings toward investment in Iraqi financial securities, including shares, bonds, treasury bills and fixed deposits.
Second: The Financial Investment Company is considered one of the intermediary financial establishments for the purposes of Iraqi Central Bank Law No. 64 of 1976. The bank is the sectoral quarter, which will be concerned with its activity and exercise the authority of its supervision and control, in accordance with an ordinance which will be issued for this purpose within 180 days from the date of the publication of this law in the Official Gazette
[Shredd] now this is exciting...... sovereign debt like I've talked about back when the banking and investment conference took place
[Shredd] so, this is addressing Iraq's own selling of debt......or look at it this way....investment in iraq's bonds and t bills
[Shredd] this company will direct these and organize these....very good....they are painting the entire picture here folks ty T
[tlm724] Article 10: First: Suspended. Second: Companies engaging in any of the following activities must become joint-stock companies:
1. Insurance and re-insurance.
2. Financial investment. Article 11: Any economic project, which is not covered under the provisions of Article 10 of this law can take the form of one of the companies stipulated in this law.
[tlm724] Article 16: First: The founders shall deposit the amounts of the company's capital specified in Article 28, paragraph First of this law with one or more banks authorized to operate in Iraq. It is permissible for the company capital to include contributions in kind as stipulated in Article 29 of this law.
[Shredd] i guess my only comment is that insurance and re-insurance continues to be an attractive investment vehicle, so good to see it mentioned here.
[BondLady] surety companies
[BondLady] but thats pretty forthright any other comments per this? we covered a ton in the beginning that pertain to all of these
[DogzNova] I have noticed the t-bill auction doubled lately.. lots of interest in the last couple of t-bill auctions
[DogzNova] by the public
[Shredd] there's your proof tyvm Dog
[DogzNova] you welcome
[BondLady] tyvm dn
[BondLady] thats why i wanted all my team here your all awesome
[tlm724] Article 26: The company's capital shall be specified in Iraqi dinars.
[tlm724] thats for bubbies
[BondLady] in iqd not usd
[DogzNova] unfort.. I dont post them in the fourm.. sorry
[BondLady] yeppers tis ok you can show them in this chat if you want to dn as a example if you wanna grab it we will wait
[DogzNova] http://www.cbi.iq/index.php?pid=CbiAuctions Total Offerings 200'000'000'000 (used to be 100,000,000,000) ...... Total Public Bidding 353'000'000'000 (Used to be 200,000,000,000)
[DogzNova] thats the T-bill auction
[DogzNova] The MOF auctions.............. thus is another auction the CBI does.. U can also see a little bit of increase in public bidding http://www.cbi.iq/index.php?pid=MofAuctions
[DogzNova] BondLady I wish I knew more about these auctions... But unfort I dont.. But I can see the increase in public bidding..
[BondLady] k tyvm
[tlm724] Article 27: The capital shall be allocated to carry out the business specified in the company's contract and to fulfill its obligations. It is impermissible to dispose of the capital in any other way.
Shredd] this is a great article.......once you borrow the funds, we are going to make sure you use it as you should
[DogzNova] thats part of the anti launding part?
[BondLady] were into the company law now
[Shredd] these articles are all part of the over-arching company law
[grashopa] DogzNova ...more along the lines of misapropreation of funds......
[BondLady] right there won’t be any
[DogzNova] lots to absorb
tlm724] Article 32: First: Suspended. Second: Suspended. Third: It is impermissible for the Investment Company to invest more than 5 percent of its capital in the shares of any company. It is also impermissible for it to own more than 10 percent of the capital of any company, while taking the previous percentage into consideration. Its cash liquidity must not, at any time, be less than 10 percent of the paid-up capital.
[tlm724] Article 39: Fourth: Founders shall not subscribe to the shares while they are being offered for public subscription, except after the end of 30 days from the beginning of the subscription or during the extended period stipulated in Article 42 of this law.
Article 45: First: Any person whose lawful rights would be infringed by violations of the subscription rules, the Registrar and the competent state authority for the securities market has the right to contest the soundness of the subscription process before the competent court and ask for its cancellation within 15 days from the closure of the subscription. The court must examine such cases urgently. The court's decision can be contested before the court of appeal, which shall sit as a court of cassation, and its decision in this capacity shall be final.
[Shredd] article 32 is similar to what we have in the US this limits the concentration of the investment so as not to allow too much control by the investment company again, protection for investors fairness
[DogzNova] sweet stuff
[tlm724] Article 47: First: Once the company has been established and some shares are still not subscribed for, the board of directors may, after six months from the date of the issuance of the establishment certificate, pursue one of two courses: 1. Sell shares in the Baghdad Stock Exchange market; or
2. place the shares for public subscription in accordance with the procedures followed during the constituent subscription. Second: If the shares are not sold in the market or subscribed by the public, the company's nominal capital shall be decreased by the value of the unsold shares.
[Shredd] this is just saying they are addressing making sure all investments are fully funded again, more layers of protection
PART 3 CONTINUED