Control Procedures of the Central Bank of Iraq Under Agreement of the Foreign Accounts Tax Compliance Act

Emad Mohammed Farhan, D.

	Control Procedures of the Central Bank of Iraq Under Agreement of the Foreign Accounts Tax Compliance Act "FATCA"
Economic Sciences
Article 1, Volume 11, Issue 42, 2016, Pages 95-128 PDF (0 K)
Author
D. Emad Mohammed Farhan
Abstract
The Global banking system has become works within a one integrated system can not work any financial institution in isolation from it, and because of the great development of the business environment as well as the dominance of some states on the biggest banks in the world, as well as, technological evolution in the means of communication and the Internet, which has made the world small village. Because these banks operate under the laws and standards, decisions and instructions and conditions are almost uniform. Iraqi Banks, particularly the Iraqi Central Bank, which represents the top of the pyramid banking is one of the parties to this global system, which can not do without. As passing all funds transferred from Iraq to beneficiaries abroad through international banks as well as the central bank of Iraq and the Iraqi banks have accounts in various currencies and gold reserves in those banks, then there is a real need to work within the global banking system by any Iraqi bank which requires adaptation laws and regulations imposed by the global banking environment, in this light that, the research may take the theoretical part of the foreign accounts tax compliance act "FATCA" with the importance of the Iraqi Central Bank in promoting this general framework,but the practical side has touched on the legal environment related to in (FATCA) in Iraq and the application of a proposed mechanism to ensure implementation. Among the most important findings of the research include: A- the legal requirements: Although there are some legal provisions in the Banking Act No. 94 of 2004 and the Law on Combating Money Laundering No. (93) for the year 2004 that can help in the application of the Convention, but these texts do not give enough space for the application. B- There are no at the Iraqi central bank any plan or procedures or mechanism for the implementation of the Convention (FATCA) in Iraq, and also how they are reported by the banks and the Central Bank of Iraq and what information they require reporting?. In light of the above research found a set of recommendations represented the following: A - The Central Bank of Iraq to issue a clear and written instructions easily applied by banks in respect of the Law (FATCA) at the moment, with amendments to some laws to adapt to the Act on the long term. B- the Iraqi Central Bank to adopt a mechanism through which to determine the have identification document open customer accounts proceedings (individuals and institutions), as well as, improve the efficiency of reporting by banks to the Central Bank of Iraq and the inclusion of information that requires reported in those reports.

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Control Procedures of the Central Bank of Iraq Under Agreement of the Foreign Accounts Tax Compliance Act "FATCA"