The judiciary exposes the currency auction with surprising information

by **claud39** Mon Feb 01, 2021 6:11 pm

02/01/2021

{Baghdad: Al Furat News} The judiciary revealed that an investigation into the auction of foreign currency sale to the Central Bank of Iraq had reached an advanced stage, "revealing" surprising information about it.

In the wake of the recent economic repercussions in the country, and after a generalization directed by the Supreme Judicial Council, the investigation court specialized in combating money laundering began conducting an investigation regarding one of the most important pillars affecting the national economy inherent in the (foreign currency sale auction) and following up on the violations of some private banks of the law jointly in the auction of foreign currency, where the competent judge said that the investigation has reached the advanced stages of detection of illegal operations and fraud and forgery to participate in the auction sale of the currency and the smuggling of foreign currency outside the country is causing great damage to the Iraqi economy and the impact on the people.

in
turn , has taken court Investigation of the Rusafa specializing in issues of integrity, money laundering and economic crime, on the twenty-fourth of last December, legal procedures against thirteen private banks from entering the currency auction through their customers without submitting customs permits supporting the entry of goods and without being held accountable for tax.

The court mentioned issued decisions to bring directors authorized banks offense due to breach of due diligence procedures imposed by the Anti - Money Laundering Act and the financing of terrorism No. (39) for the year 2015 stating that it was taking legal action against all dealers offenders with banks.

Laundering money and its impact On the national economy in
light of the recent economic repercussions and the concurrent judicial procedures, the Judicial Development Institute organized on Monday January 18, 2021 a seminar entitled (Money laundering crimes and their impact on the national economy) in which the first judge of the Rusafa investigation court specialized in cases Integrity, money laundering and economic crime Yad Mohsen Damad, and it witnessed the presence of a group of economists, legal experts, university professors and media professionals.

The workshop reviewed four axes that began with the role of the judiciary in implementing Iraq's international obligations, followed by a discussion of the formation of a money laundering investigation court and its procedures by considering cases related to the same aspect. Examples of judgments issued as well as media dealing with money laundering cases and its impact on procedures were also reviewed. Investigation and trial. The workshop concluded by referring to the role of the judiciary in combating the crime of money laundering and its great role in removing Iraq from the list of high-risk countries.

The judge of the Rusafa Investigation Court had presented during the statistical workshop for the work of the court from 2017 to 2020, which amounted to (604) cases referred to the misdemeanor and felony courts in the same matter. It also reviewed the total amounts of financial fines imposed on banks and other financial institutions from 2015 to 2020, which amounted to (535) billion Iraqi dinars related to bank violations, in addition to presenting the value of funds confiscated and withheld as a result of legal procedures in money laundering cases before courts, which amounted to more than four billion nine hundred and eighty - seven million ID.

Following this was for ( the judiciary) pause with the judge 's first court of inquiry competent Rusafa integrity issues, money laundering and economic crime Iyad Muhsin ligature, began addressing the recent workshop and the goal of I established it in these circumstances specifically, as he spoke:

The main goal of this workshop , which was launched under the guidance of the Supreme Judicial Council is to clarify the role of the Iraqi judiciary in the fight against the crime of money laundering levels:

international, where the Supreme Judicial Council to provide an essential contribution to the fight against money laundering file in Iraq to the Financial Action Organization (FATF) to contribute effectively to remove Iraq from the list of high - risk countries (black list) and transferred to the white list. this
came after it carried out Iraq (49) of the recommendations imposed by the Organization (FATF international) and became under that within the ranks of countries Advanced in the field of combating money laundering.

The workshop to attend statistical issues resolved by the competent court, classification and review of the funds that have been frozen and the funds that were confiscated and the funds withheld as provided, as well as the review of the financial amounts imposed by the judiciary and the Central Bank of the banks that have entered the currency auction and did not abide by the regulations.
* At the same side (The judiciary) directed Judge Iyad Mohsen Damad several questions related to the content of (judicial procedures against those causing damage to the national economy), which began with the results of the court competent to look into cases of integrity, money laundering and economic crime from the results of the judicial procedures against private banks announced by the Judicial Council The highest in late 2020 about taking legal action against thirteen of them for entering the currency auction through their customers without submitting customs permits supporting the entry of goods and without being held accountable for tax?

Judge ligature replied:

Shall those banks violated the due diligence concerning the law against money laundering No. (39) for the year 2015 also violated the instructions of the Central Bank in relation to the entry of banks and their customers to sell the currency auction.

I would also like to note that they were not the first time In which the court takes measures against a group of private banks, since 2008, legal measures have been taken against private banks that have registered violations in the currency auction, where a number of authorized managers and employees have been referred to the competent courts for committing legal violations and errors regarding financial transfers They carried out it was not in exchange for real commercial business, as it was observed that the purpose of these transfers was to pay the sums of imports for which goods were supposed to enter the country, but they transferred sums abroad without receiving any goods.

The central bank instructed banks are obliged to ask its customers to bring permits Kmarkip and a tax charge for anyone who violates those instructions from the banks , the judiciary has taken legal action against him at the level of the investigation have been forwarded to the courts of misdemeanors and felonies. In
addition to the large fines imposed by the Central Bank of Iraq against those banks Violation and meeting the differences in exchange rates thereof The court also imposed a set of confiscation provisions and fines against those violating banks.

As for the merits of the case, it lies in the arrival of a report from a member of Parliament stating that some of the banks that entered the currency auction since 2017 are lagging in their obligations, as he stated in his communication that some of the auction entry operations are aimed at smuggling and not for commercial or economic purposes. In parallel, the court received a report from the Central Bank supporting the report of the aforementioned deputy, and as a result the court requested the names of the violating banks, as it was provided with a list of thirteen private banks, followed by the court requesting the names of the companies and customers who entered the currency auction through that Banks and obtained them as well, and the court directed questions to the two public authorities for taxes and customs related to those names and their presence with them.

Where the General Tax Authority answered the court’s question related to its being taxed with it in the negative, indicating that it was not taxed. The Court also got an answer to the General Authority for Customs whether those names have introduced goods to meet the funds transferred abroad by her to confirm the absence of the index in its database stating the entry of goods for such transfers.

That the evidence was sufficient to take legal action against the banks, we asked Following them, the names of the authorized directors of each bank, and after they were received by us, the court issued arrest warrants and recruitment decisions against them.

The court also proceeded to take legal measures against all companies and customers who entered the currency auction and transferred money without bringing goods for it. The court has gone a long way with the investigation procedures for this aspect. Added to say that every decision would be taken by the court in accordance with legal evidence available and in accordance with the fundamentalist procedures drawn by the assets of the Iraqi Code of Criminal
Procedure. - Is it possible to witness the Iraqi street closed judicial proceedings on the impact of private banks in the light of the results of the investigation?

- It is not within the powers of the investigating judge that the Criminal Procedures Law drawn up and drawn up by the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015 to close a bank on the background of violations he commits. The court cannot exceed the powers specified for it by law. Because the process of closing banks, stopping their work, or placing them under the recommendation is considered financial and administrative decisions that are made exclusively by the Central Bank of Iraq with the administrative, financial and economic control powers it has granted to it under the Iraqi Central Bank Law and the Anti-Money Laundering and Terrorism Financing Law No. (39) for the year 2015. In light of this, the Central Bank can direct financial and administrative penalties against violating banks. It can also suspend its work, as well as declare the bank bankrupt and place it under recommendation and initiate liquidation or rehabilitation procedures. As for the court, according to the aforementioned law, it has the powers to seize funds that may constitute the proceeds of original crimes or through which money laundering operations are conducted. Here, I stress that it is not within the powers of the court to suspend a bank from work or cancel its license. As we deal in accordance with the existing legal frameworks.

Fruitful initiative , Dr.
Adnan al- Saraj , head of the Iraqi Center for Development and Media was his active participation in the workshop , during which he made a number of proposals, made for ( the judiciary) , a speech in which he said
that the organization of the Supreme Judicial Council for educational workshops and seminars on the economic aspect of deepening the judiciary look at media, particularly in respect of the crime of money laundering , which was the focus of the workshop hosted by the Supreme Judicial Council.

It is known that the most grave impact on the Iraqi economy is the crime of money laundering and we Kmokhtchin observers appreciate the great role played by the Iraqi judiciary to limit those The crime is through his competent court and its strict procedures, and he is counted for his tireless efforts that resulted in the removal of the Financial Action Organization (FATF) Iraq from the list of high-risk countries (the black list).

With regard to the aspect itself pointed out that the judicial proceedings were strict accordance with the laws relating to economic crime , but our observations stand on the implementation by the competent authorities, which we have several indicators on the performance.
Regarding the recent judicial proceedings , which coincided with the economic consequences suffered by the market We refer to its clarity through direct guidance to the President of the Supreme Judicial Council to take all legal measures against everyone who causes harm to the national economy, whether by foreign currency dealers or monopolistic merchants of goods and food commodities and the necessary commodities that citizens need daily, and here we stand at the role of the executive authorities with regard to the diagnosis of these violations and referred to the judiciary.

consistent performance
from recent judicial proceedings concurrent with the repercussions of the financial crisis was for ( the judiciary) and pause with the economic expert on behalf of Jamil Anton , who said:
Certainly the law when they are activated following up the manipulators currency and monopolists of the market will play a major role to limit those violations to be the performance of the executive body consistent with judicial decisions.

As the follow - up and coordination with the executive bodies and in the central vanguard bank and customs will substantially to reduce this phenomenon , provided that the deal according to specific without foundations to create the sensitivity of the market on their impact resulting negative reaction lead to a contraction
in.
Speaking about the judicial aspect of the economy , said Anton said
experts and specialists believe the Iraqi economy and its role Bakdhaina The big one who plays him in serving the nation and being keen on its economy, and therefore I say that the judiciary should raise more than the economic levels of its apparatus by intensifying courses and workshops specialized in the economic aspect and making them more effective, specifically targeting judges and investigators.

Legal solutions and
in his answer to our question related to the issue of currency auction and its repercussions, which economists and financial experts see as harmed the national economy and the Iraqi dinar collapsed because of it? Anton indicated that there are legal solutions that can be used to deter this phenomenon, as he stated:

The auction selling the currency is one of the factors developed in the Iraqi market, where in the past time there was a special department concerned with controlling the external transfer, but for more than 17 years the Iraqi market has been in a state of openness in terms of import and currency circulation, as a result of which the holder of the dinar became the owner of the dollar American, considering that our country is running a market economy. Therefore, it is necessary to change the outlet of the uncontrolled market economy and move towards a social market economy that limits the phenomenon of domination and control of monopolists, manipulators and smugglers of currency, and here the judiciary plays its role by activating laws that end this phenomenon, as happened with the decisions of its council late last year.

Also, importing through the banking system as it was in the past, the use of documentary credits (LC) and control of external transfer, as well as cooperation with the Border Ports Authority, issuance of customs declaration and import licenses, with an annual import approach, will greatly reduce this phenomenon. Provided that there is a match between the sums sold through the single window in the currency auction and the goods entering customs through all border outlets and preventing irregular border outlets, as well as controlling them with the Kurdistan region, and if this matter is achieved, then there will be a match between the sums sold in the auction The currency and the goods that enter according to the customs declaration and the banking system, which in turn will then be far from the influences of the influential, since what is happening now is that the prices of goods have been subjected to a great disparity with the entry of China as a basic economic power that exercises its role by influencing the global pricing of goods and thus we have distinguished between the goods The good and the bad.As the control of that process must be in accordance with permanent follow-up and the judiciary monitor.

As for the issue of the sudden devaluation of the Iraqi dinar, it is certain that it has created problems in the Iraqi market as a result of external and internal debts and obligations between wholesalers and retailers as well as the treatment drugs are also affected by this matter. So it must be Tsairtha privacy and prove according to the price controlled by the state in order to Aaahram citizen to receive treatment due to the high price.

Ammar al - Masoudi

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