Central Bank of Iraq Law No. 94 of 2004

Law No. 94 of 2004

Article 1

1. This Law is titled "The Central Bank of Iraq Law" and shall be effective from the first of January, 2004.

2. The following terms shall have the meanings assigned to them below, unless the context requires otherwise:

• The Bank: The Central Bank of Iraq.
• The Board: The Board of Directors of the Central Bank of Iraq.
• The Governor: The Governor of the Central Bank of Iraq.
• The Deputy Governor: The Deputy Governor of the Central Bank of Iraq.
• The Minister: The Minister of Finance.
• The Council: The Council of Ministers.
• The Company: The Company for the Printing and Minting of Currency.
• The Banker: Any person or entity licensed by the Bank to conduct banking business.
• The Banking System: All banks and financial institutions operating in Iraq.
• The Currency: The Iraqi Dinar.
• Foreign Exchange: Any foreign currency or monetary instrument.
• The State: The Republic of Iraq.

3. The Bank is a public institution with independent legal personality and financial autonomy. It shall have its headquarters in Baghdad and may open branches or representative offices inside or outside Iraq as deemed necessary.

4. The Bank shall be subject to the supervision of the Board of Directors, which shall consist of the following members:

• The Governor, who shall chair the Board.
• The Deputy Governor.
• Five members appointed by the Council of Ministers upon the recommendation of the Minister of Finance, for a term of four years, renewable once.

The Board shall convene at the call of its Chairman or upon the request of at least three of its members. The quorum for holding meetings shall be the majority of its members. Decisions shall be taken by a majority vote of the members present, and in the event of a tie, the Chairman shall have the casting vote.

Article 2

1. The Bank shall be responsible for the following:

• Issuing the national currency and managing its circulation.
• Formulating and implementing monetary policy to maintain the stability of the currency.
• Regulating and supervising the banking and financial sector.
• Managing the State's foreign exchange reserves.
• Acting as the banker to the Government and providing financial services to it.
• Promoting the stability of the financial system.

2. The Bank shall exercise its functions in a manner that supports the general economic policy of the State, without prejudice to its primary objective of maintaining currency stability.

3. The Bank shall not provide direct financing to the Government, except as permitted by this Law or other legislation.

Article 3

1. The Bank shall have the exclusive right to issue banknotes and coins in Iraq.

2. The design, production, and distribution of banknotes and coins shall be carried out by the Company for the Printing and Minting of Currency, under the supervision of the Bank.

3. The Bank shall determine the face value, design, and security features of the currency.

Article 4

1. The Bank shall maintain the value of the Iraqi Dinar against foreign currencies and gold.

2. The Bank shall use all available monetary policy tools to achieve price stability and support sustainable economic growth.

3. The Bank shall publish regular reports on its monetary policy decisions and their impact on the economy.

Article 5

1. The Bank shall regulate and supervise all banks and financial institutions operating in Iraq.

2. The Bank shall issue regulations and directives to ensure the soundness and stability of the banking system.

3. The Bank shall have the power to inspect, examine, and audit the books and records of any bank or financial institution.

4. The Bank shall take necessary measures to protect the interests of depositors and maintain public confidence in the banking system.

Article 6

1. The Bank shall manage the State's foreign exchange reserves.

2. The Bank shall determine the exchange rate regime for the Iraqi Dinar.

3. The Bank shall regulate foreign exchange transactions and ensure compliance with international standards.

Article 7

1. The Bank shall act as the banker to the Government.

2. The Bank shall provide financial services to the Government, including the management of its accounts and the issuance of government securities.

3. The Bank shall not provide direct credit to the Government, except in exceptional circumstances and with the approval of the Council of Ministers.

Article 8

1. The Bank shall have the power to impose sanctions on banks and financial institutions that violate laws, regulations, or directives issued by the Bank.

2. Sanctions may include fines, suspension of licenses, or revocation of licenses.

3. The Bank shall ensure that sanctions are applied fairly and transparently.

Article 9

1. The Bank shall cooperate with other regulatory authorities in Iraq and internationally.

2. The Bank shall exchange information with foreign central banks and regulatory bodies to enhance the stability of the financial system.

3. The Bank shall participate in international financial organizations and forums.

Article 10

1. The Bank shall have its own budget, which shall be approved by the Board.

2. The Bank shall generate its income from fees, charges, and investments.

3. The Bank shall not rely on government funding for its operational expenses.

Article 11

1. The Bank shall appoint a Governor, who shall serve as the chief executive officer.

2. The Governor shall be appointed by the Council of Ministers upon the recommendation of the Minister of Finance, for a term of five years, renewable once.

3. The Governor shall be responsible for the day-to-day management of the Bank and the implementation of the Board's policies.

Article 12

1. The Bank shall establish committees to assist the Board and the Governor in their duties.

2. Committees may include the Monetary Policy Committee, the Risk Management Committee, and the Audit Committee.

3. The composition and functions of committees shall be determined by the Board.

Article 13

1. The Bank shall maintain accurate and complete records of its transactions.

2. The Bank shall prepare annual financial statements in accordance with international accounting standards.

3. The annual financial statements shall be audited by an independent external auditor.

Article 14

1. The Bank shall publish its annual report, including the audited financial statements and an overview of its activities.

2. The annual report shall be submitted to the Council of Ministers and made available to the public.

Article 15

1. The Bank shall have the power to issue regulations and directives necessary for the implementation of this Law.

2. Regulations and directives shall be published in the Official Gazette.

3. The Bank shall ensure that regulations and directives are consistent with this Law and international standards.

Article 16

1. The Bank shall have the power to grant exemptions from certain provisions of this Law or regulations issued under it, subject to conditions specified by the Bank.

2. Exemptions shall be granted only in exceptional circumstances and for a limited period.

Article 17

1. The Bank shall have the power to collect data and statistics from banks and financial institutions.

2. The Bank shall ensure the confidentiality of data collected from banks and financial institutions.

3. The Bank shall publish statistical data relevant to the monetary and financial system.

Article 18

1. The Bank shall have the power to investigate any suspected violations of laws, regulations, or directives.

2. The Bank shall cooperate with law enforcement agencies in the investigation of financial crimes.

Article 19

1. The Bank shall have the power to suspend or revoke the license of any bank or financial institution that fails to comply with laws, regulations, or directives.

2. The Bank shall ensure that the suspension or revocation of a license does not disrupt the stability of the financial system.

Article 20

1. This Law shall be published in the Official Gazette and shall enter into force on the first of January, 2004.

2. All previous laws and regulations inconsistent with this Law are hereby repealed.

End of Law