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BONDLADY'S CHAT 1-11-2013

Rogue Knight

By Rogue Knight,
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Rogue Knight

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[bondLady] 1st and foremost...my sincere respect, admiration and gratitude goes to our timmy for all her diligence and her work she put in reading the new banking and investment laws she discovered passed on 11/18/12 i believe that was the date and it was gazetted into law...ty so much timmy.... she has did the work of reading through the massive laws for us and pulled parts from it for us

[bondLady] no 1 has even realised or even has even a small clue on just how big and important these laws were to us and iraqs banking and investments...i appreciate u all so much...and hope u all too see the hugeness of these things passed and unearthed by our timmy...again ty so much....BondLady

[bondLady] now before timmy starts to bring in the laws or parts from them

[bondLady] if any one has a comment they would like to make before we start breakin down the laws

[shredd] i do

[bondLady] please do so now

[bondLady] and they will be copied also unless u say not to

[bondLady] ok ty

[tlm724] i do as well

[shredd] Ok, lemme just start with this statement, and this is very important for everyone in this investment to understand

[shredd] until the banking laws are set, so much cannot happen in Iraq.

[shredd] For any economic growth to happen, protection for investors and their investment funds must be in place.

[shredd] Fires don’t get put out in regards to investments, they burn the structures to the ground!

[shredd] Fires must be avoided.

[shredd] Basel III compliance which is a global regulatory standard on bank capital adequacy, stress testing and market liquidity risk must be in place.

[shredd] Anti-money laundering (AML), Know Your Customer (KYC) and all controls to mitigate counterfeiting must be in place.

[shredd] Investor perception on the level of safety in investing in Iraq is imperative and until that happens, we won’t see action.

[shredd] So, to see the banking laws in the gazette is huge….it’s the opening of the “door.”

[shredd] I manage massive portfolios up to a trillion dollars in size and work with all the big names you can think of and so many more, so I know what I’m talkin about!

[shredd] This is great "behind the scenes" work that was DONE

[shredd] go ahead miss T

[tlm724] Shredd ty

[grashopa] lets do this by section.......ie: Banking Laws..............Company Laws.....Labor Laws.....etc.

[tlm724] I want to take a moment to thank each of you . We have an awesome team and you have all taught me so much and given your time and knowledge freely, I am honored to be among you. I also want to thank grashopa for helping me find and understand so many things, you will never know how much you have helped me ! But most of all I want to say to you BondLady, that my little star could not begin to shine without you, you have blazed the trail for us to follow and have set the standard for truth and dedication. I am humbled by your faith in me and will always be grateful for your guidance and friendship. Thank you.

[grashopa] awww.....ty Timmy

[shredd] imo, it's easy for the typical investor to only focus on what will directly bring an increase in the rate of the dinar, but please understand this is the foundation that Iraq's economy will be built on.

[shredd] you see, for any economy to fourish,

[shredd] debt must be invested in

[shredd] in other words, lending and borrowing

[shredd] this is the case for Iraq

[shredd] and all investments need the foundational backing of financial institutions, i.e., banks

[shredd] and the banking is governed

[shredd] by these laws

[shredd] we have the SEC here

[shredd] and just for investment, there are many laws, six primary ones tho

[shredd] and they protect investors

[shredd] investment firms

[shredd] this is standard and we all know the investment world is watching iraq closely

[bondLady] ok lets begin with the bringing in the parts of the laws i'll leave it to timmy as to which parts she starts with and we will all have a chance to put in our comments in this round table discussions of them

[shredd] ok

[bondLady] timmy when you’re ready

[tlm724] here is the link to all that will be discussed http://www.iraq-lg-law.org/en

[tlm724] Banking Law Article 2 Regulatory objectives 1. The primary regulatory objective of this Law is to maintain confidence in the banking system. Other regulatory objectives include those of promoting public understanding of the banking system by providing appropriate information, maintaining an appropriate degree of protection for depositors, and helping to reduce financial crime, including fraud, money-laundering and terrorist financing.

[shredd] key words here: confidence in banking system

[shredd] providing protection

[shredd] for who?

[shredd] depositors.....

[shredd] lemme expain that piece really quick....

[shredd] for any bank,

[shredd] the number one source of income

[shredd] is NII, nor Net Interest Income

[shredd] makin money off deposits

[shredd] so this is foundational and very important!

[grashopa] this only bonifies all that Shabs was doing in London, Dubai, Germany and Japan..............these laws OPEN the door with confidence

[therealbubbie] the one thing that stands out to me in the banking law is this ..1. The capital of a domestic bank shall be specified in dinars. A bank shall at all times maintain minimum paid-up capital that is not less than 10 billion dinars or such higher amount as may be established by the CBI. Existing banks must reach this capital within 18 months of the effective date of this order

[therealbubbie] shall be specified in dinars

[bondLady] by providing transparency is key here...so many of them never know what the right hand is doing per the left...this is saying we're being transparent about everything, we want you to be satisfied with our work and we want to be satisfied with yours....and its also showing stability to the people and to the country and the international world of investors who wish to invest in iraq.... and showing they will be no coruption and will be totally open and forthright

[tlm724] this is just an FYI : Article 40 Financial year The financial year of domestic banks shall begin on January 1 and end on December 31 the same year. For a branch of a foreign bank, the financial year may differ.

[tlm724] Article 5 License application g. a business plan setting out the business objectives and types of activities envisaged for the proposed bank, including a description of its organizational structure and internal control systems (including adequate measures to counter money-laundering and terrorist financing as defined in the Anti-Money Laundering Law of 2004 (AML)) together with projected balance sheets, profit and loss accounts and cash flow statements for the next three full financial years;

[bondLady] this law i have waited to see for well over 2 yrs

[bondLady] when shabibi 1st talked about it saying it had to be in place before any new money or rate adjustment could ever happen

[bondLady] this counterfitting law and money laundry law had to be done

[shredd] precisely

[bondLady] iraq has to send a VERY clear STATEMENT and send a strong one to the world..this is the new iraq

[bondLady] and corruption in the banks and within the investments and the banks will not be tolerated

[bondLady] and by passing this law

[bondLady] its going to hold all the forgers counterfitters and money launders accountable

[bondLady] this had to be done before we could ever see a real change in the rates values imo it took them this long for it to pass and its truly a clear signal imo to the world iraq will not stop from trying to bring the corrupt and the ones who hurt iraq and its economy by money laundry and counterfitting the currency

[shredd] i agree, these laws had to be finalized first

[bondLady] exactly

[bondLady] any other comments per this?

[tlm724] Article 13 Revocation of banking license or permit f. the bank, or the foreign bank or bank holding company of which the bank is a subsidiary, or a subsidiary of the bank, has engaged in criminal activities constituting fraud, money-laundering or terrorist financing;

[tlm724] Article 21 Disclosure of personal interest 1. Each administrator or senior bank official shall disclose in full to the board of directors any significant personal financial interests, directly or indirectly, that the administrator or senior bank official may have. Each also must disclose the same information for other individuals in the administrator’s or senior bank official’s household. Subject to paragraph (2) of this article, such written disclosures shall be made by the administrator or senior bank official upon appointment or election, and annually thereafter, in accordance with guidelines adopted by the bank and pursuant to any regulations issued by the CBI.

[tlm724] comments please

[shredd] this is the motivation behind a bank staying in compliance with these laws

[shredd] the bank i work for has had some stiff penalties it had to pay in years past because of some money laundering that slipped through the cracks

[shredd] and we paid dearly for it

[shredd] this is telling us that the banks and individuals have responsibilities

[shredd] the same goes for us and all banks

[tlm724] Article 26 General banking principles 3. The CBI shall, by regulation, prescribe detailed standards of conduct for banks which the CBI shall apply in its prudential supervision in accordance with international standards and best practices.

[tlm724] international standards

[tlm724] comments

[shredd] a good example of an international standard

[shredd] is KYC

[shredd] know your customer

[shredd] which is....

[shredd] best practices around onboarding a new client

[shredd] doing research on their company

[shredd] their financials

[shredd] their history

[shredd] again, making sure safety and risk mitigation are at the top of the list

[shredd] one last comment on this T....

[shredd] this also spans to interbank administration

[shredd] meaning, the rest of the global banking sector and it's interfacing with Iraqi banks.....

[shredd] the minimum standars of one bank may be greater than the other

[shredd] so, the Iraqi banks will have to meet those requirements

[shredd] that's all, ty

[tlm724] Article 29 Prudential requirements 2. In particular, banks shall establish and apply internal policies on prudential ratios governing: d. prohibitions, restrictions or conditions concerning: (i) the types or forms of credits and investments made, and liabilities assumed (contingent or otherwise); (ii) matching as to maturity and interest in respect of assets and liabilities (contingent or otherwise); and (iii) unhedged positions, exceeding a specified ratio, in foreign currencies or precious metals; exchange and interest rate instruments; stocks and other transferable securities; and forward contracts, swap agreements, futures, options, and other derivatives relating to currencies, stocks, bonds, precious metals or interest rates.

[tlm724] comments

[shredd] ok, a lot of pieces to this one.......

[bondLady] this is just awesome

[bondLady] yes there is

[shredd] ok, so prohibitions, restrictions or conditions for the investment vehicles listed......

[shredd] in a nutshell, this is spelling out that the full spectrum of investment vehicles are covered under this Iraqi investment law

[shredd] which is awesome!

[shredd] this gives us a glimpse...

[shredd] of what types of investment Iraq will be a part of.....

[bondLady] swap agreements in other words make deals and contracts whether it’s in currencies or precious metals gold, silver etc...and what interest rates and profits are to be had through this and how they will be divided

[shredd] unhedged positions,swaps on the higher risk investment side....

[bondLady] clearly opening the doors of transparency and showing iraq is all about making money for the investor and for iraq

[shredd] stocks, bonds, options.....safer investments

[shredd] so, this covers investor diversity!

[bondLady] done on my end

[shredd] yes, great point on the transparency Bondlady

[shredd] i agree...

[shredd] that is the theme here and we saw that being a requirement loud and clear after the financial crisis

[therealbubbie] and that investors will be protected !

[shredd] investors all said they want to be clear on what they invest in

[shredd] yes bubbie, protection

[bondLady] all of these laws they are wanting the world to see that too no more being secretive, were ready to show you our hand so show us yours and we can work together as a team for the good of the investors who took the chance and risk on iraq and for the people who trust the leaders of iraqs cbi to guard and protect the peoples monies and investments

[tlm724] Article 35 Suspicious transactions 1. If a bank or any of its administrators, officers or employees learns that the execution of any banking transaction or the receipt or payment of any sum of money pertains or may pertain to any crime or illegal act, the bank shall immediately notify the appropriate official or judicial authority to this effect. The bank shall inform the CBI on a monthly basis about suspicious transaction reports submitted, if any, and concerning any need for additional action regarding this matter.

[tlm724] comments

[shredd] Bondlady, correct, and guess what's next? A internationally recognized currency

[bondLady] see where they say..."if any"

[bondLady] they want u to know there won’t be any

[bondLady] absolutley shred

[grashopa] RE: Transparency..... Article 42 Principles for accounting and preparation of financial statements 1. Banks shall: a. maintain proper books and records required for orderly operations in accordance with the provisions set out in Article 38; b. apply accountancy rules and systems in conformity with international accounting standards (IAS), including the use of full accrual accounting on a daily basis, and in compliance with any special requirements stipulated by the CBI in this regard; and c. prepare its financial statements comprising the balance sheet, profit and loss account, cash flow statement and statement of changes in the bank’s capital account in an adequate manner that reflects the reality of the financial positions of the bank and its branches. The financial statements shall be prepared in accordance with international accounting standards (IAS) and in compliance with any special requirements stipulated by the CBI in this regard. The financial statements shall give a true and fair view of the state of affairs of the bank and shall include a statement on the bank’s internal control systems. 2. Banks shall comply with any regulations or orders issued by the CBI with respect to the rules set out in paragraph (1). The CBI shall issue, by regulation, provisions on the accounting system and rules applicable to banks.

[tlm724] ty grashopa

[shredd] this article is exactly what we have to adhere to in the US

[tlm724] and if there is any section or article that you want to discuss please feel free to bring it

[bondLady] these laws are truly opening the door to go international with their currency and there country, thier preparing to come out of chapter 7 and become a major player in the world of huge big finance

[therealbubbie] Article 26 General banking principles... 8. The CBI may provide guidance, including by means of establishing rules for good business conduct, or specify by regulation rules to ensure the banks’ good relations with their depositors and customers.

[therealbubbie] cbi saying you can trust us now !

[bondLady] yeppers

[bondLady] and what a statement to make

[bondLady] coming from 1 of the very most corrupt countries in the world

[therealbubbie] good relations with their depositors and customers.

[shredd] right

[grashopa] Article 44 Publication of financial statements 1. A bank shall publish, in two newspapers of general circulation, its audited financial statements, including audited consolidated financial statements, if applicable, not later than four months after the end of the financial year. 2. Each bank shall display in a prominent location at its head office and its branches its most recent audited financial statements,

including audited consolidated financial statements, if applicable, and a list of the names of the members of its board of directors.

[bondLady] and they want as bubbies pointed out for all the investors to pay and pay employees in iraq with iraqs currency not usd

[therealbubbie] hey people of iraq put your money with us and not under a mattress !

[bondLady] right

[shredd] right, and imo "big, bad Maliki" don't want to keep on using his babysitter's currency forever

[bondLady] and for the citizens to put trust once again in the banks

[bondLady] as shabibi set everything in motion for all this to come about these are shabibis laws they would not pass while shabibi was still in iraq

[bondLady] these laws were his foundation

[therealbubbie] hey world come and invest in the New Iraq

[bondLady] and he set it all on a firm foundation to weather any storm that could come at them through there economy, private sector and banks

[bondLady] when he 1st passed what they call the "telephone law"

[shredd] ah yes, that's right

[bondLady] he said 3/4 of the people didn't know how to use a bank account or to make a bank account but they all had cell phones and knew how to use them and through the public announcements and through the big screens set up all over iraq...the cbi and the goi and all officials will be able to walk them through step by step using their cell phones to do all of their banking needs....

[bondLady] done

[tlm724] Article 46 Audit 1. Each bank shall appoint an independent external auditor with qualifications and experience in the audit of banks acceptable to the CBI. The external auditor shall be appointed by the bank’s shareholders at the general meeting of shareholders, provided that if the bank fails to appoint an auditor satisfactory to the CBI, the CBI shall appoint such auditor.

[tlm724] Article 47 Additional duties d. certify whether or not adequate measures to prevent money-laundering or terrorist financing have been adopted by the bank and are being implemented in accordance with such regulations, orders and guidelines issued by the CBI.

[tlm724] comments

[bondLady] i've pretty much included my comments from above to this....

[bondLady] any one else?

[shredd] this is a good article....

[shredd] we use external auditors

[shredd] and what this does, is ensures compliance with all the laws

[shredd] to say you comply with a law is one thing

[therealbubbie] Each bank shall appoint an independent external auditor with qualifications and experience in the audit of banks acceptable to the CBI... can't have unle shabi do the audit

[shredd] but to have a qualified external auditor attest to it is a big deal

[shredd] so, this is a great article because it says they will comply with what is law

[shredd] not just say they will

[shredd] a big difference from the goi

[tlm724] Article 51 Exceptions c. actions taken in good faith in the course of the performance of duties or responsibilities imposed by this Law or in the implementation of measures countering money-laundering and terrorist financing pursuant to regulations of the CBI;

[tlm724] Article 56 Prompt corrective action and administrative penalties 1. The CBI may take any measure or impose any administrative penalty stipulated in paragraph (2) of this article in cases where it is evident that a bank, an administrator of a bank or any other person: a. violated the provisions of law or any regulation or order issued by the CBI; b. conducted unsafe or unsound banking operations

[shredd] this looks like one we saw earlier, but again, showing penalties will be enforced if not in compliance

[bondLady] yes

[bondLady] if you steal if you rob if you forge if you try to hurt our economy and our banks any more than you already have iraq will not stand for it you will be brought to justice before a iraqi court of your peers and you will be held accountable

[bondLady] pretty heavy stuff

[grashopa] when we get to the Company Law part.......it explains in more detail

[bondLady] for some reason they don't mind blowing themselevs up but if they have to stand before a court and a judge and jury it freaks them out they don't want no part of it...they would rather die than to face the people for there crimes

[shredd] it has to be, if soft, they won’t attract investment

[tlm724] Article 57 Illegal banking business 1. Each person who engages in banking activities as a business without a banking license or permit issued by the CBI is guilty of an indictable offense and liable to the penalty for fraud contained in the Penal Code. 2. The penal courts shall be responsible for hearing actions initiated by the public prosecutor based on the request of the CBI or any concerned party.

[tlm724] Article 59 Grounds for appointment of a conservator 2. The CBI may appoint a conservator for a bank when the CBI determines that: c. there is evidence that the bank or any of its administrators have engaged in criminal activities punishable by imprisonment of one year or more or there is reasonable cause to believe that the bank or any of its administrators are engaging in such criminal activities. h. the bank, or the foreign bank or bank holding company of which the bank is a subsidiary, or a subsidiary of the bank, has engaged in criminal activities constituting fraud, money-laundering or terrorist financing as defined in the Anti-Money Laundering Act of 2004;

[tlm724] comments

[bondLady] i've already gave mine above

[grashopa] and......in the Company Law section............it explains the penalties

[shredd] the first one is huge...there will not be any off the wall entity engaging in banking......only those approved by the CBI

[bondLady] we will get to that shortly gh ty

[shredd] we continue to see a heavy oversight by the CBI throughout this all.....

[therealbubbie] now you can understand why maliki wanted to take over the cbi !

[shredd] the second article is huge too....gives you a snapshot of the penalty

[shredd] puts teeth to this dog

[bondLady] 1 last part per this quote....or a subsidiary of the bank, has engaged in criminal activities constituting fraud, money-laundering or terrorist financing as defined in the Anti-Money Laundering Act of 2004; .....see this is setting them up for being removed from ch 7.....or terrorist financing as defined in the Anti-Money Laundering Act of 2004;

[bondLady] giving their word to fight terrorism and not fund it either

[tlm724] any final comments on the Banking Law?

[therealbubbie] Banking Law is huge !

[bondLady] its very huge and anyone who didn't think this law was important is totally clueless imo

[tlm724] we will move on to the Company Law

[tlm724] my thoughts on the Company law. Think London, Berlin, Tokyo , iraq begging for investors, companies to be formed by these foreign nations to rebuild Iraq and help establish a prosperous iraq . Now these foreign companies and investors would need specific laws in order to open or operate. without them no country or company would consider it. This law establish's the rules for forming companies, ie.. board of directors, stock offering regulations ,protecting the rights of creditors and investors etc... More importantly it deals with "financial investment companies which are companies organized in Iraq whose main activity is to direct savings toward investment in Iraqi financial securities, including shares, bonds, treasury bills and fixed deposits".

[tlm724] Company Law Article 1: The objectives of this law are to. 1. organize companies; 2. protect creditors from fraud; 3. protect shareholders from conflicts of interest and related abuses by company officials, majority owners, and others with practical control over the affairs of the company; and 4. promote the provision of full information to owners in connection with decisions affecting their investment and their company.”

[grashopa] Article 3: This law applies to mixed and private companies and to all investors. Its provisions shall apply to banks to the extent they do not conflict with Coalition Provisional Authority (CPA) Orders

[shredd] protect shareholders from conflicts of interest and related abuses by company officials, majority owners, and others with practical control over the affairs of the company;

[shredd] this is a big one...

[shredd] lemme explain quick...

[shredd] in many investment vehicles,

[shredd] in many securitized debt instruments

[shredd] there are levels of investment from investors

[shredd] they invest in different "tranches" or levels of debt based on their risk appetite

[shredd] and diversification parameters/goals

[shredd] so, this article is protecting these holders

[shredd] from not only company officials abuses

[shredd] but majority owners...that's key

[shredd] so, that's like if the top tranche of investors decide to control a company's debt instrument

[shredd] the little guys like the stock holders will be protected

[shredd] this, again, is spelling SAFETY

[shredd] TRANSPARENCY

[shredd] PROTECTION

[shredd] LOW RISK

[shredd] which is this "door" being opened that we are trying to show you all

[tlm724] Article 4: First: The company is a contract binding two or more persons. Each person shall subscribe to the economic project by a quota of the capital or service in order to share the resulting profit or loss. Third: Owners of capital in a company may not exercise their voting or other authority in the company to cause it to do or consent to acts that: 1. harm or disadvantage the company to benefit themselves or those associated with them at the expense of other owners of the company; or 2. jeopardize the rights of creditors by causing withdrawal of capital or transfer of assets when insolvency is imminent or when prohibited by law. Article 5: The company shall acquire the corporate status in accordance with the provisions of this law.

[tlm724] comments

[shredd] ok, lemme explain this one...

[shredd] many may think "company" means a business

[shredd] but in the investment world,

[shredd] an investment structure is incorporated

[bondLady] this again is showing if you bring your buisness to iraq, we will make sure your monies are safe, we will make sure you get your profits on time, we are here to insure your buisness experiance in iraq will be a safe and fruitful one....

[shredd] and so this is speaking to that.......that causes for withdrawal of capital are addressed

[shredd] when capital is withdrawn on an investment, even by one investor, it will collapse the investment

[shredd] so, this is a bit granular, but it is really spelling out what investors are looking for....this depth of protection

[shredd] deeper than the common peeps would understand

[tlm724] Article 9: First: The Financial Investment Company is a company organized in Iraq whose main activity is to direct savings toward investment in Iraqi financial securities, including shares, bonds, treasury bills and fixed deposits. Second: The Financial Investment Company is considered one of the intermediary financial establishments for the purposes of Iraqi Central Bank Law No. 64 of 1976. The bank is the sectoral quarter, which will be concerned with its activity and exercise the authority of its supervision and control, in accordance with an ordinance which will be issued for this purpose within 180 days from the date of the publication of this law in the Official Gazette

[tlm724] comments

[shredd] now this is exciting......

[shredd] sovereign debt like I've talked about back when the banking and investment conference took place

[shredd] so, this is addressing Iraq's own selling of debt......or look at it this way....investment in iraq's bonds and t bills

[shredd] this company

[shredd] will direct these and organize these....very good....they are painting the entire picture here folks

[shredd] ty T

[tlm724] Article 10: First: Suspended. Second: Companies engaging in any of the following activities must become joint-stock companies: 1. Insurance and re-insurance. 2. Financial investment. Article 11: Any economic project, which is not covered under the provisions of Article 10 of this law can take the form of one of the companies stipulated in this law.

[tlm724] Article 16: First: The founders shall deposit the amounts of the company's capital specified in Article 28, paragraph First of this law with one or more banks authorized to operate in Iraq. It is permissible for the company capital to include contributions in kind as stipulated in Article 29 of this law.

[shredd] i guess my only comment is that insurance and re-insurance continues to be an attractive investment vehicle, so good to see it mentioned here.

[bondLady] surety companies

[bondLady] but thats pretty forthright any other comments per this? we covered a ton in the beginning that pertain to all of these

[DogzNova] I have noticed the t-bill auction doubled lately.. lots of interest in the last couple of t-bill auctions

[shredd] see?!!!!!

[DogzNova] by the public

[shredd] there's your proof

[shredd] tyvm Dog

[DogzNova] you welcome

[bondLady] tyvm dn

[bondLady] thats why i wanted all my team here your all awesome

[tlm724] Article 26: The company's capital shall be specified in Iraqi dinars.

[tlm724] thats for bubbies [/color]

[bondLady] in iqd not usd

[DogzNova] unfort.. I dont post them in the fourm.. sorry

[bondLady] yeppers

[bondLady] tis ok you can show them in this chat if you want to dn

[bondLady] as a example

[bondLady] if you wanna grab it

[bondLady] we will wait

[DogzNova] ok..

[bondLady] ty

[DogzNova] http://www.cbi.iq/index.php?pid=CbiAuctions Total Offerings 200'000'000'000 (used to be 100,000,000,000) ...... Total Public Bidding 353'000'000'000 (Used to be 200,000,000,000)

[bondLady] awesome

[DogzNova] thats the T-bill auction

[DogzNova] The MOF auctions.............. thus is another auction the CBI does.. U can also see a little bit of increase in public bidding http://www.cbi.iq/index.php?pid=MofAuctions

[DogzNova] BondLady I wish I knew more about these auctions... But unfort I dont.. But I can see the increase in public bidding..

[bondLady] k tyvm

[tlm724] Article 27: The capital shall be allocated to carry out the business specified in the company's contract and to fulfill its obligations. It is impermissible to dispose of the capital in any other way.

[tlm724] comments

Shredd] this is a great article.......once you borrow the funds, we are going to make sure you use it as you should

[DogzNova] thats part of the anti launding part?

[bondLady] were into the company law now

[shredd] these articles are all part of the over-arching company law

[grashopa] DogzNova ...more along the lines of misapropreation of funds......

[bondLady] right

[bondLady] there won’t be any

[DogzNova] lots to absorb

tlm724] Article 32: First: Suspended. Second: Suspended. Third: It is impermissible for the Investment Company to invest more than 5 percent of its capital in the shares of any company. It is also impermissible for it to own more than 10 percent of the capital of any company, while taking the previous percentage into consideration. Its cash liquidity must not, at any time, be less than 10 percent of the paid-up capital.

[tlm724] Article 39: Fourth: Founders shall not subscribe to the shares while they are being offered for public subscription, except after the end of 30 days from the beginning of the subscription or during the extended period stipulated in Article 42 of this law. Article 45: First: Any person whose lawful rights would be infringed by violations of the subscription rules, the Registrar and the competent state authority for the securities market has the right to contest the soundness of the subscription process before the competent court and ask for its cancellation within 15 days from the closure of the subscription. The court must examine such cases urgently. The court's decision can be contested before the court of appeal, which shall sit as a court of cassation, and its decision in this capacity shall be final.

[tlm724] comments

[shredd] article 32 is similar to what we have in the US

[shredd] this limits the concentration of the investment so as not to allow too much control by the investment company

[shredd] again, protection for investors

[shredd] fairness

[DogzNova] sweet stuff

[tlm724] Article 47: First: Once the company has been established and some shares are still not subscribed for, the board of directors may, after six months from the date of the issuance of the establishment certificate, pursue one of two courses: 1. Sell those shares in the Baghdad Stock Exchange market; or 2. place the shares for public subscription in accordance with the procedures followed during the constituent subscription. Second: If the shares are not sold in the market or subscribed by the public, the company's nominal capital shall be decreased by the value of the unsold shares.

[tlm724] comments

[shredd] this is just saying they are addressing making sure all investments are fully funded

[shredd] again, more layers of protection

[tlm724] Article 55: Shares may be offered at a price equal to or greater than their nominal value in accordance with the general assembly’s decision and priced in light of the company’s performance and, where applicable, the prices of its shares in the Baghdad Stock Exchange market. The proceeds reflecting the difference between the issue price and nominal price, which is considered issuance allowance, shall be recorded in the account of the issuance allowance reserve, after deducting all issuance expenses. This reserve may not be distributed as profits.

[tlm724] comments

[shredd] all congruent with what we have here

Shredd] as we read through each one of these, again, it's so great y'all to see the depth at which all aspects are being addressed. Again, from my current experience, this is all tasting, smelling and sounding like what we have here. This is all music to investor's ears.

[shredd] investors, including stock holders in companies

[shredd] ty T

[tlm724] Article 56 :Fourth. In the case of banks increasing capital by a sale of shares for cash, the company may issue shares without public subscription and/or without offering existing shareholders the right to participate, provided the following conditions are met: 1. The issuance is approved by a majority of the votes of the subscribed shares whose due installments have been paid; and 2. The Central Bank of Iraq concurs that the sale is for fair value, in view of all the circumstances, and is fair to shareholders not entitled to participate, in view of the benefit to the company as whole.

[tlm724] comments

[shredd] so this is addressing ongoing investment once the initial investment is done......more shares being offered to current holders and the regulation behind it.......we see the oversight again of the CBI.

[tlm724] Article 77: The joint-stock company can seek a loan by issuing nominal bonds in accordance with the provisions of this law and inviting the public to buy these bonds. The subscriber shall be issued bonds against the sums of money he loans to the company. He has the right to charge an interest, which shall be paid to him at fixed periods. The value of the bonds shall be re-paid from the company's funds. These bonds will be of one nominal value. They will also be exchangeable, but not divisible. Each bond issue will have separate serial numbers and shall be stamped with the company's seal. Article 78: It is impermissible to issue credit bonds before meeting the following conditions: First: The company's capital must be fully paid. Second: The total amount of the bond issue must not exceed the company's capital. Third: The general assembly's approval of the issuance on the recommendation of the board of directors must be obtained in advance

[tlm724] comments

[shredd] great nuts and bolts here explaining the bond market

[shredd] repayment, structuring, exchange and registration.....standardization

[shredd] ty T

[therealbubbie] in other words you can't get away with nothing !!

[tlm724] Article 117: Eighth. The board of directors shall establish committees of its members to make recommendations as to (a) selection of the company’s external, independent auditors (audit committee); and (B) compensation form and amount for the board and the managing director (compensation committee). Members of these committees shall not be officers or employees of the company nor holders of 10% or more of the company’s shares, nor related to any of these by blood, marriage or personal or economic interest in a degree likely to materially bias their judgment. Any departure from the recommendation of such a committee, and the reasons for it, shall be announced at the shareholders meeting and recorded in its minutes. The audit committee shall meet privately with the company’s external auditors and have special responsibility for ensuring the accuracy and reliability of their work. It shall ensure that a record is kept in the course of the year of all material related-party transactions, within the meaning of international accounting standards, for discussion with the company’s external auditors.

[tlm724] comments

[shredd] none for me, pretty self-explanatory

[bondLady] think we've pretty much covered the majority of these things unless you see something specific we haven't

[bondLady] we can move on to the next

[tlm724] Article 133: First: The accounts of the mixed company shall be subject to control and audit by the Financial Control Bureau. As for the accounts of the private company, they shall be subject to control and audit by auditors appointed by the company's general assembly. Accounts should be consolidated with those of related companies in accordance with international accounting standards unless specifically modified by standards in force in Iraq.

[shredd] regulation and oversight....just like the SEC

[shredd] so great to see this

[tlm724] Article 134: The board of directors' report on the final accounts in the case of the joint-stock company, and managing director's report in the case of the other companies shall include detailed statements on the company's activities, especially on the following: First: The significant contracts concluded by the company during the previous year and the businesses in which owners of 10% or more of the company’s shares, the members of the board or the managing director had interests, including interests of their families, entities under their control and any other interest that would render the transaction a relatedparty transaction under international accounting standards insofar as permissible to apply these in Iraq. Second: The results of operations (including earnings) and distribution of net profit. Third: The reserve balance and its uses. Fourth: The sums received by current and previous members of the board of directors and the managing director in the form of wages or awards in cash or in kind, which they enjoy Fifth: The sums which have been spent on publicity, travel, entertainment, and donations.

[tlm724] comments

[grashopa] see this..........this is transparency at the company level....

[grashopa] Section Three: Inspection Article 140: The company shall be subject to inspection by one or several professional inspectors, who will be chosen by the Registrar, in the case of a justifiable claim made by any of the following quarters that the company has violated the provisions of this law, its contract, or the decisions of its general assembly:

[grashopa] Article 141: The Registrar has the right to appoint an inspector when necessary without asking the permission of any quarter. If the company believes that the Registrar has exercised its powers under this section for improper purposes, it may apply to the competent court to prove this and obtain an order restraining any improper action.

[grashopa] Second: The appointed inspector shall submit his or her report on the inspection to the Registrar, who shall send copies of the report to the company and the person making the claim referred to in Article 140.

[grashopa] Article 143: The company's general assembly can appoint its own inspector to inspect the company's work. It shall also specify his task, the scope of his work, and the type of report he must submit, provided a copy of the report is sent to the Registrar. Article 144: Company employees must allow the inspector to have access to all of their books, documents, and records. The inspector may also interview the employees and those connected with the company on the case which is being investigated.

[grashopa] comments

[tlm724] Article 207: The Ministry of Trade, in cooperation with the Ministry of Finance, the Financial Control Bureau, and the Planning Board, shall issue guidelines for the accounting system to be adopted by the companies and everything that pertains to their final accounts. Article 208: First. The minister of trade shall issue guidelines to facilitating the implementation of this law. Second. The Agency Registration Law No. 4 of 1999 shall be inapplicable to the registration of a company, and a company is not required to retain a commercial agent to register, though it may choose to do so. Furthermore, no certification of tax compliance or of the absence of tax delinquency shall be required for the registration of a company. The Minister of Trade is hereby authorized to issue instructions to coordinate the activities of the Registrar of Companies and the Chamber of Commerce regarding the registration and approval of commercial trade names, notwithstanding anything to the contrary in The Law on Establishment of Chambers of Commerce No. 43 of 1989.

[tlm724] this last one shows the fines and penalities for non-compliance

[tlm724] Article 213: First: Any economic project that does not take the form of a company shall be punishable by a fine of 1,000 dinars for every day of delay after the grace period stipulated in Article 210 of this law. Second: The punishment stipulated in paragraph First of this Article shall apply to every company branch or office that must be re-registered or liquidated, for every day of delay after the periods stipulated in regulations and administrative instructions issued under CPA Order No. 39 Article 217: Any company failing to submit the required statements and information to a competent official quarter at the times fixed under the provisions of this law shall be subject to punishment of a fine of not more than 300,000 dinars for every day of delay, depending on the severity of the violation. Article 218: Any company official who purposely gives inaccurate statements or information to an official quarter on the company's business, results of operations, financial condition, member shares and quotas, and distribution of dividends shall be subject to punishment of imprisonment for a period of not more than one year, or a fine of not more than 12,000,000 dinars, or both, depending on the severity of the violation. Article 219: Any company official who bars a competent quarter from seeing the company's records and documents shall be subject to punishment of imprisonment for a period of not more than six months or a fine of not more than 12,000,000 dinars, or both, depending on the severity of the violation.

[tlm724] end

[DogzNova] wait wait wait...

[shredd] yes, the consequences need to be spelled out too which is great to see.

[DogzNova] now this one has some bite

[shredd] yes

[shredd] my hope is for those who read through this all that they get a deeper respect for the many layers of regulation

[shredd] this took a lot of time to build

[DogzNova] 8 yrs

[shredd] and to see it passed and as a law is huge

[grashopa] The branches and offices of foreign companies and establishments shall be subject to the provisions of CPA Order No. 39 and regulations and administrative instructions issued thereunder.

[grashopa] CPA 39 is what gave us the right to own Dinar

[DogzNova] really

[therealbubbie] shall be punishable by a fine of 1,000 dinars for every day of delay... wow that's a heavy fine ... whats that like 10 dollars a day

[grashopa] Section 4 Treatment of Foreign Investors 1) A foreign investor shall be entitled to make foreign investments in Iraq on terms no less favorable than those applicable to an Iraqi investor, unless otherwise provided herein. 2) The amount of foreign participation in newly formed or existing business entities in Iraq shall not be limited, unless otherwise expressly provided herein......

http://www.iraqcoalition.org/regulations/20031220_CPAORD_39_Foreign_Investment_.pdf

[bondLady] i can guarantee when this goes into effect that 1000 iqd fine will not be at the rate of 1166

[DogzNova] can’t be

[bondLady] well almost guarantee it

[bondLady] whats 70 cents or so

[grashopa] ok.......these fines are what can be called liquidated damages

[grashopa] they are there to make them comply

[grashopa] and if you look at them

[grashopa] there doesn't seem to be too much deterent

[grashopa] at 1166

[bondLady] right

[grashopa] BUT

[grashopa] put a rate to it

[bondLady] but the new rate would deter

[grashopa] and BAM...........there is your deterrent

[therealbubbie] 1-1 !!!!!!

[DogzNova] Areas of Foreign Investment 1) Foreign investment may take place with respect to all economic sectors in Iraq, except that foreign direct and indirect ownership of the natural resources sector involving primary extraction and initial processing remains prohibited. In addition, this Order does not apply to banks and insurance companies. 2) Foreign investment may take place in all parts of Iraq.

[grashopa] this.......IMO...........is so HUGE

[therealbubbie] Foreign investment may take place in all parts of Iraq.

[DogzNova] I like that PDF grass.. ty

[grashopa] at 1166....... 300,000 dinar is a whopping $257

[therealbubbie] this chat is as long as the banking law !

[tlm724] my final thought, remember that no wise person plays the game unless they know the rules. Iraq has laid out the rules for the world to see.... let the games begin...

[DogzNova] tlm724 great point

[shredd] tlm724 well said

[bondLady] awesome chat my fellow admins and mods

[grashopa] Thank you ....Our team............and especially Timmy for all the hard work and research

[bondLady] i hope the ones reading this realize just how much time and effort went into its preparation and the work of many to bring it to them

[bondLady] and in laymen’s terms

[bondLady] it was a totally awesome chat

[bondLady] so do we make closing remarks or just do it !!

[grashopa] the penalty part makes ya think......

[DogzNova] yah

[DogzNova] the rate is right there

[bondLady] looks like huh

[DogzNova] it's every bit 1-1

[grashopa] at least it shows intent to change it

[DogzNova] thats great

[therealbubbie] here is the one of the labor code rules ..Wages shall be paid in Iraqi currency. Payment of wages in other currencies shall not release the employer from his or her obligations to the worker.

[bondLady] thank you all

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Brisco Apprentice

Brisco

Posted
Posted

THIS is HUGH

Really nothing could happen in regards to IRAQ functioning under their own currency internationally again until these laws were in place.

This is what makes it possible for IRAQ to RV their currency.

NOW EVERYBODY CAN START GETTING EXCITED!

Thanks Rouge for bringing this over!

I've been waiting ELEVEN years for this.

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BrokeNoMore Newbie

BrokeNoMore

Posted
Posted

THIS is HUGE

Really nothing could happen in regards to IRAQ functioning under their own currency internationally again until these laws were in place.

This is what makes it possible for IRAQ to RV their currency.

NOW EVERYBODY CAN START GETTING EXCITED!

Thanks Rouge for bringing this over!

I've been waiting ELEVEN years for this.

Yeah yeah yeah. I'm excited. I'll get excited when I actually take the toilet paper to the bank and they give me an account with six or eight ZEROS. That's when I'll get excited. I suppose I'm a little deflated after only 2 years.

You did mean HUGE, right?

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gp49 Newbie

gp49

Posted
Posted

This is exciting news. Bondlady and her mods/staff are very credible and they do a lot of hard work. Thanks for bringing this chat.

RVPlease...sometimes you are a little too quick towards the negative and it seems to be a waste of time getting your foot out of your mouth.

THIS is HUGH

Really nothing could happen in regards to IRAQ functioning under their own currency internationally again until these laws were in place.

This is what makes it possible for IRAQ to RV their currency.

NOW EVERYBODY CAN START GETTING EXCITED!

Thanks Rouge for bringing this over!

I've been waiting ELEVEN years for this.

I agree Bisco! It is huge and I am getting excited.

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Brisco Apprentice

Brisco

Posted
Posted

THIS is HUGH

Really nothing could happen in regards to IRAQ functioning under their own currency internationally again until these laws were in place.

This is what makes it possible for IRAQ to RV their currency.

NOW EVERYBODY CAN START GETTING EXCITED!

Thanks Rouge for bringing this over!

I've been waiting ELEVEN years for this.

Sorry HUGE :twothumbs:

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Rogue Knight Newbie

Rogue Knight

Posted
  • Author
Posted (edited)

[tlm724] here is the link to all that will be discussed http://www.iraq-lg-law.org/en"'>http://www.iraq-lg-law.org/en"

This is the only link I see and it goes to a law library page on some old laws in a local government section. Is there another I missed?

http://www.iraq-lg-law.org/en or for more info http://www.lgp-iraq.org/ These links are pinned to the Iraq News Section here on DV at the very top.

Edited by Rogue Knight
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zul Newbie

zul

Posted
Posted

" [bondLady] i hope the ones reading this realize just how much time and effort went into its preparation and the work of many to bring it to them

[bondLady] and in laymen’s terms....."

TQ Bondlady & team.. :tiphat:

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Francie26 Newbie

Francie26

Posted
Posted

Rogue, your first link goes to a law library page of old laws on local governance. Your second goes to an ad page of sponsored sites.

Is there a link to the Gazette?

This might be something you could research and bring to DV. After you do the research, I'm sure we'd all be interested in your posts.

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RVPleaseToday Newbie

RVPleaseToday

Posted
Posted

Here is the link to the information they are discussing...it is exactly what they are discussing...but it is from 2004.

http://www.iraq-lg-law.org/en/content/iraqi-banking-law-order-no94-2004

I think I may see their confusion, though. The are looking at the "Updated" column, and seeing the 11/18/2012 date thinking it means a newly approved law. It doesn't mean that, though. Iraq has been cleaning up these documents for years when a spelling or other error is found. These are not new laws.

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