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To all approved banks Empty To all approved banks

Post by claud39 on Tue Mar 17, 2020 9:21 am

To all approved banks




March 17, 2020









To all approved banks News-158443979532315






[size=20]M / controls the certificates of deposit and bank investment certificates
 [/size]

 Based on the commitment of this bank to achieving the second strategic goal (strengthening and strengthening the banking sector and financial institutions) within its strategic plan for the period (2016-2020) and to increase the number of financial instruments that create liquidity in cooperation with the Securities Commission and the Iraq Stock Exchange, certificates of deposit and bank investment certificates were issued.

To download the uncles and controls for the certificates of deposit and bank investment certificates, click here

https://cbi.iq/static/uploads/up/file-158443962582381.pdf







https://cbi.iq/news/view/1468
claud39
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To all approved banks Empty M / controls the certificates of deposit and bank investment certificates

Post by claud39 on Tue Mar 17, 2020 9:38 am

M / controls the certificates of deposit and bank investment certificates


March 17, 2020
To all approved banks News-158443979532315



To the Central Bank of Iraq
Banking Department
Islamic Banking Control Section
Instructions and Controls Division
Deposit certificates and certificates controls
Investment investment



According to Article (27 / C) of the Banking Law No. 94 of 2004 and Article (5 / VII) of
Islamic Banking Law No. (43) of 2015 has issued the following controls:

First: terms and definitions

1- Banking Deposit certificates: - A security note issued at face value against customer deposits (fixed and savings)
Investment accounts (issued with different values ​​and varying terms (short and medium term)) are not subject to payment
For recovery, they are of two types:

A- Not tradable in the market (short term): The term is (one year or less).

B- Tradable in the market (medium term): The term is (1-2) years.

The primary purpose of bank deposit certificates is to provide quick liquidity to the issuer and provide an opportunity
Investment return for the bearer and issued by traditional and Islamic banks with special consideration
Islamic banks.

2- Banking investment certificates: - A security issued at face value to finance a specific project and for periods
(Medium and long-term) based on either the bank’s capital or its customers ’deposits
(Fixed, savings and investment accounts) issued with different values ​​and varying terms (3-7 years) and are not
Recoverable, but negotiable.

The primary purpose of investment certificates is to finance a specific project for its source and provide an investment opportunity
It is owned by the bearer and issued by traditional and Islamic banks, taking into account the privacy of banks
Islamic.

3- The Banking Alliance: - Two or more banks cooperated to issue investment certificates in order to finance a project
Specific, and to provide appropriate guarantees against their issuance taking into consideration the privacy of banks
Islamic.

4- Issue Manager: - An intermediary financial company that undertakes the issuance of investment certificates and takes all
Issuance procedures on behalf of the issuing party (the bank), and the relationship is between the bank and the issuing manager
List on the basis of the agency's contract with pay.

5- Issue Coverage Undertaker: - The party that undertakes to purchase what is not covered by the investment certificates.

6- Issue Bulletin: - A document containing data explaining the mechanism and conditions for issuing and circulating certificates and a date
Maturity.

7 - Certificates: - A term referring to certificates of deposit and bank investment certificates wherever they appear in these
Controls.

8- The Bank: - The Central Bank of Iraq.

9- The Commission: - The Securities Commission.


10-Market: the Iraq Stock Exchange.

11 - Sharia Board: - Sharia Supervisory Board in Islamic banks.

12 (AAOIFI:) Accounting and Auditing Organization for Islamic Financial Institutions.

13 -IFSB: The Islamic Financial Services Board.

Second: Certification procedures

1- The bank’s board of directors wishing to issue certificates must obtain the bank’s approval before issuing it
Provided that an application is submitted to the bank with all the information related to the issuance attached, according to the special form
By type of certificate (Form No. (1) for certificates of deposit and Form No. (2) for investment certificates).

2 - The bank studies the application according to the information provided within (30) working days, taking into consideration
Please indicate the reason for the refusal. The current status of the issuing bank for the purpose of approval or rejection is issued

3- The bank submits an application for listing certificates to the market within a period of (30) working days after marketing and success
The issuance process.

Third: Conditions for issuing certificates

1 - When issuing certificates of deposit, the following must be adhered to:

A- Opening a special account for each customer through which a specific amount is deposited for the purpose of issuing the certificate.

B - The issuance of certificates should be in nominal terms, provided that the return is calculated on the basis of (364) days per year.

C- That the issuance of certificates be in the national currency (Iraqi dinar).

D- That the certificates be issued in the main branch of the bank.

For each release
C- The bank issuing the certificates must maintain a separate (paper and electronic) private record
It includes all the information included in the prospectus.

H- The foreign bank branch must obtain the approval of its general management before submitting the application to the bank.

G- The total issued certificates should not exceed 300% of the bank’s capital and reserves
Sound.

D - It is required to provide this bank with a quarterly report that includes the total issues that were achieved during the quarter
The financial position of the existing issues, according to Form No. (3).


2 - When issuing investment certificates, the following must be adhered to:

A- Opening a special account for each customer through which a specific amount is deposited for the purpose of issuing the certificate.

B - The certificates are for the purpose of financing a specific project, the details of which are mentioned in the prospectus and submitted
Invitation to the public to buy.

T - The issuance of certificates should be in nominal terms, provided that the return is calculated on the basis of (364) days in
the year.

W - The issuance of certificates in the national currency (Iraqi dinar).

C- That the certificates be issued in the main branch of the bank.

H- The issuance manager should undertake all procedures related to the issue.

For each process

G- The bank issuing the certificates must maintain a separate (paper and electronic) private record
Issuance and includes all the information included in the prospectus.

D- The foreign bank branch must obtain the approval of its general management before submitting the application to the bank.

I- The total issued certificates should not exceed 300% of the bank’s net capital
And its proper precautions.

R- It is required to provide this bank with a quarterly report that includes the total issues that were achieved during the quarter
The financial status of the existing issues according to Form No. (3) along with the financial statements of the project
Periodically.

Fourth: Trading inside the primary market
For these controls
 Banks may issue investment certificates based on their capital to finance a specific project in accordance
They are negotiable on the market (only between banks).

Fifth: Cover the issue

 In case the issue size of the issue investment certificates is not covered by the issue, the issuer undertakes to cover the issue
To buy the remainder of them which are not covered by the public.

Sixth: Listing and trading certificates in the market
The listing and circulation of certificates are subject to the controls of the Iraq Stock Exchange.

Seventh: The prospectus

1- Certificates are issued through the prospectus for each certificate, which must include a minimum
The information shown below: -

A- Project information (in case of investment certificates).

B- The nominal value of the issue.

C- Issuance category:

W- Type of Issue:

C- Time period (deadlines) for certificates.

H- The rate of return on certificates.

X- The method of dividend distribution.

D- The percentage of the bank’s contribution to the issue based on the banking alliance.

I- The owners of investment certificates have the right to see the financial statements of the project.

T- Certification dates for issuance.

G - listing and trading mechanisms.

2- The issuing bank shall bear the correctness of the information stated in the prospectus.


Eighth: profits and losses in certificates

1- In the case of traditional banks

A- Profits are distributed to certificate holders before shareholders.

B - Profits are distributed in one of the following ways:

The first method: In the case of certificates of deposit, the return will be distributed permanently at the end of the entitlement period.
The second method: In the case of investment certificates, profits may be distributed on the basis of payments under the account to
When the certificate is due.

C - In case of loss in investment certificates, they are covered by (Bank Certificate Risk Management Allowance)
To the issuer.

2- In the case of Islamic banks:

A- Profits are distributed to certificate holders before shareholders.

B - Profits are distributed in one of the following ways:

The first method: In the case of certificates of deposit, the return will be distributed permanently at the end of the entitlement period.

The second method: In the case of investment certificates, profits may be distributed on the basis of payments under the account to
According to the verdict or verdict (evaluation), the end of the entitlement period for results
C- In case of loss of certificates, they are covered by the reserves mentioned in Paragraph (IX / 2), and it guarantees
The bank's loss in case of infringement and default.

Ninth: Provision and reserves for bank certificate risk management

1 - In the case of conventional banks, a provision is established to meet investment risks, which are deducted from
Certificates revenue for the certificates.

2- In the case of Islamic banks, the following reserves are created:

A- Bank Certificate Investment Risk Reserve: - The amount that the issuing Islamic bank charges
Income from certificates container after deducting the speculative share.

B- Bank certificates profit rate reserve: - The amount that the issuing Islamic bank charges
From the revenue of the certificates container before deducting the speculative share.


Tenth: Privacy of Islamic Banks:

In addition to the paragraphs mentioned above, Islamic banks are required to adhere to the following:

1 - If the investment certificates were issued by a banking alliance or by a bank and were reinforced
With guarantees, the type of promotion must be mentioned in the request for issuance and submitted to the bank.

2- Certificates of deposit are issued on the basis of speculation between the bank (the speculator) and the customer (the owner of the money).

3- Investment certificates are issued on the basis of speculation or participation between the bank and the customer.

4 - In the event that the investment certificates issued were backed by guarantees by the bank or by a party
Third, it must be stated that the guarantee covers cases of infringement and default only.

5- The approval of the Sharia Supervisory Board of the issuing bank must be obtained before the issuance process.

6- Certificates contracts and operations must comply with the international Islamic standards issued by
AAOIFI, IFSB, and related standards.

7 - The prospectus must not include the bank’s promise to purchase certificates at a nominal value, but rather to make a purchase
At market value.

8- Certificates may be insured by Islamic banks with Takaful insurance companies.

Eleventh: warranty

 Deposits on the basis of which certificates issued by conventional and Islamic banks are subject to
The guarantee with the Iraqi company to guarantee deposits.

-is over-


Model No. (1)
Details form for the issuance of deposit certificates

1 - The total value of the issue:

2 The nominal value of the issue:

3- Edition category:

4 Date of Issue:

5 Issue Sequence Number:

6. The number of the certificates of deposit for the issue (sequence) from ....... to .......

7. Maturity date:

8. Type of deposits to fund the certificate of deposit:

9 The rate of return on the certificate of deposit:

10. Any other information related to the certificate:

11- Privacy of Islamic banks

A-Type of financing contract:
B - Legal Sharia Supervision Authority:

Model No. (2)
Details form for issuing investment certificates

1 - The total value of the issue:

2 The nominal value of the issue:

3- Edition category:

4 Date of Issue:

5 Issue Sequence Number:

6 Certificate numbers for the issuance (sequence) from ....... to .......

7. Maturity date:

8. Funding basis for the certificate:

9 The percentage of the bank’s contribution through its capital in the issue:

10 The percentage of the bank’s contribution to the issue in the case of the banking alliance:

11. Names and percentages of other banks' contribution to the issue in the case of the banking alliance (shown through a table attached to the form)

12. An appendix that includes the economic feasibility study and establishment requirements for the project.

13 The rate of return on investment certificates:

14- How to pay the return on the certificate:

15 Issue Manager:

16- Issue Coverage Undertaker:

17.Any other information related to the certificate:

18- Privacy of Islamic Banks:

A- Approval of the Shari'a Supervisory Board (for Islamic banks):
B- The type of financing contract for the investment certificate (speculation or participation):


Model No. (3)

Quarterly statement on the financial status of existing certificates of deposit and investment certificates
Bank name: Date:
Nationality of a pregnant woman
Certificate
Losses
Realized
in a
Certificates
)the list(
Value for returns
Total
)the list(
the value
Total
For the release
Yeh
)the list(
Returns
Paid
Rate of Return
Annual
Number
Certificates
Type
Certificate
category
Edition
Date
Merit
Date
Edition
Serial number
The version is not
Iraqi Iraqi
The internal control department authentication The investment department manager authentication The delegated manager authentication
Authentication of the Department of Internal Control and Sharia Auditing


https://cbi.iq/static/uploads/up/file-158443962582381.pdf



https://cbi.iq/news/view/1468
claud39
claud39
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Posts : 16105
Join date : 2018-11-04

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