COALITION PROVISIONAL AUTHORITY ORDER NUMBER 40
BANK LAW
Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA) and under the laws and usages of war, and consistent with relevant U.N. Security Council resolutions, including Resolution 1483 (2003),
Having worked closely with the Governing Council to ensure that economic change
occurs in a manner acceptable to the people of Iraq,
Acknowledging the Governing Council’s desire to bring about significant change to the Iraqi economic system,
Determined to improve the conditions of life, and opportunities for all Iraqis and to fight unemployment with its associated deleterious effect on public security through stable financial markets,
Recognizing the problems arising from Iraq’s legal framework regulating banking
activities and the way in which it was implemented by the former regime,
Further recognizing the CPA’s obligation to provide for the effective administration of Iraq, to ensure the well being of the Iraqi people and to enable the social functions and normal transactions of every day life,
Recalling that U.N. Security Council Resolution 1483 (2003) called upon the CPA to promote economic reconstruction and the conditions for sustainable development,
Acting in a manner consistent with the Report of the Secretary General to the Security Council of July 17, 2003, concerning the need for the development of Iraq and its transition from a non-transparent centrally planned economy to a market economy characterized by sustainable economic growth through the establishment of a dynamic private sector, and the need to enact institutional and legal reforms to give it effect,
Having coordinated with the international financial institutions, as referenced in paragraph 8(e) of the U.N. Security Council Resolution 1483,
I hereby promulgate the following:
CPA/ORD/19 September 2003/40
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ANNEX A
IRAQ
BANKING LAW
Section 1 – General Provisions..................................................................................................5 Article 1 Definitions..................................................................................................5 Article 2 Regulatory objectives.................................................................................8 Article 3 Prohibitions................................................................................................8
Section 2 – Licensing.................................................................................................................9 Article 4 Licenses and permits..................................................................................9 Article 5 License application ..................................................................................10 Article 6 Permit application for a branch................................................................12 Article 7 Permit application for a representative office..........................................13 Article 8 Granting of license or permit ...................................................................13 Article 9 Additional offices.....................................................................................15 Article 10 Register of banks .....................................................................................15 Article 11 Fees ..........................................................................................................15 Article 12 Voluntary termination of operations........................................................15 Article 13 Revocation of banking license or permit .................................................16
Section 3 – Capital...................................................................................................................17 Article 14 Minimum capital of domestic banks........................................................17 Article 15 Net domestic assets required for branches of foreign banks ...................17 Article 16 Other capital requirements.......................................................................18