Obligatory care regulations for senior position holders with risk

Based on the provisions of paragraph (II - Article 26) of the AML / CFT Law No. (39) for the year 2015, and based on the principle of preserving public money and combating money laundering and terrorist financing offenses, The below regulations have taken into consideration On senior position holders with risk, also these regulations considered the global developments in the fight against money-laundering, which have been linked to combating the financing of terrorism and in response to FATF's international standards on AML / CFT.

      We have issued the following regulations:

 

No. (1) For the year 2017

Obligatory care regulations for senior position holders with risk

 

Article (1) the following terms for the purposes of these regulations shall have the following meanings:

First: Law: AML / CFT Law No. (39) For the year 2015.

Second: Office: AML / CFT Office.

Third: senior position holders with risk:  are persons assigned to prominent public functions in the Republic of Iraq or a foreign country, such as heads of state or government, high-level politicians, high-ranking government officials, judges, senior military commanders, executives, government owned corporate executives and political parties leaders, Or those entrusted with prominent functions in an international organization, such as members of senior management, their deputies, members of the board of directors, and similar or widely known public advisers, or any person working in a position to benefit to the extent possible From the practical link to close the political representative of the person's immediate risks and their second degree relatives.

Fourth: Financial Institutions: The financial institutions mentioned in item (VIII) of Article (1) of the above law.

 

Article 2: The provisions of these regulations shall apply to financial institutions in Iraq and their branches operating outside the Republic of Iraq and its companies which own the majority interest therein, if these provisions do not conflict with the legislation in force in the country concerned. Financial institutions with its branches or companies in which the majority of the countries whose laws are opposed to committed to the provisions of these regulations and apply them by notifying the regulatory authority.

 

Article 3 - These regulations shall apply to senior position holders with risk who hold any of the following positions or jobs, whether they are local or foreign, and their families and related persons:

(A) The President of the Republic, his deputies, his advisers and their equivalent.

(B) The Prime Minister and his advisors and members of the Council of Ministers and their equivalent.

(C) Heads of political parties.

(D) Chairman and members of the House of Representatives.

(E) Chairman and members of the Supreme Judicial Council.

(F) The heads of the independent bodies and their equivalent.

(G) Deputies of ministries, advisers and inspectors, and of their equivalent.

)H) Ambassadors, ministers, commissioners and diplomatic advisers.

)I) General Managers and their equivalent.

(J) Judges of the courts of different grades.

(K) leaders and senior ranks in the security services and their equivalent.

(L) Heads, deputies, directors of charities and non-governmental organizations and members of their board of directors, and their equivalent.

 

Article 4 - Financial institutions shall apply a risk-based approach to Obligatory care regulations for senior position holders with risk, identify and understand the risks of money laundering and terrorist financing related to them, and develop policies and strategies based on those risks. Financial institutions shall raise the results of actions taken in accordance with these provisions to the competent regulatory authorities upon request.

Article 5 - Financial institutions shall take the following actions in addition to the usual Obligatory care regulations for senior position holders with risk, as follows:

(A) Establish risk management system to determine whether the client or the real beneficiary is a senior position holders with risk, and to obtain the approval of the senior management when establishing a working relationship with the owners of these positions and upon discovery of one of the real customers or beneficiaries of those positions.

(B) Take adequate measures to ascertain the sources of the funds and activities of any client or the real beneficiary of senior position holders with risk.

)C) periodic review of risk management policies and procedures for senior position holders with risk, and take corrective action ,where necessary.

(D) Accurate and continuous follow-up of transactions of senior position holders with risk with financial institutions.

(E) In case the real beneficiary is the senior positions holders with risk, additional identification and verification must be taken of these persons and shall be aware of the real beneficiary in the case of the legal person and take the necessary procedures to determine the structure of ownership and management of the legal person, including reliance on information and data Which are obtained from official documents and other means that enable the financial institution to know the real beneficiary.

(F) These provisions shall be applied to persons at risk by virtue of their position and their relatives up to the second degree.

Article 6: These regulations shall be implemented from the date of their publication.

 

 

Ali Mohsen Ismail

Governor of the Central Bank of Iraq