The principal financial institution of Iraq (CBI) has issued a declaration starting off its standards for buying and selling and replacing banknotes.
This unofficial translation is provided in excellent faith for preferred data best. while each effort has been made to make certain accuracy, Iraq business information accepts no duty for any errors, omissions, or misinterpretations.
instructions and requirements for trading and replacing Banknotes and Counting and Sorting Mechanisms
The principal financial institution of Iraq, pursuant to its law No. 56 of 2004 as amended, is answerable for figuring out the denominations of Iraqi forex (paper and metal), their specs and designs, printing paper banknotes and minting metal coins. it is also responsible for their destruction and alternative, figuring out defective notes, and has the authority to refuse to alternate such forex (paper and metallic) or to confiscate it if the instances set forth in those instructions are met. Iraqi banknotes are homogeneous in all their denominations, have absolute prison gentle fame, and are familiar by way of the central bank of Iraq and its branches, banks, institutions and the public. Discrimination among denominations via enforcing a particular denomination on the general public or refusing to just accept a specific denomination is unacceptable and is considered contrary to law. We request all banks to conform with the commands and standards for trading and changing banknotes and the counting and sorting mechanisms as set out below:
- standards for buying and selling Banknotes:
A- Banknotes suit for move
A banknote issued by using the principal bank of Iraq stays healthy for move if it’s been subject to any of the subsequent:
firstly: If it has sustained one or more tears no longer exceeding three cm which have been repaired with transparent adhesive tape on one or each sides and this has not affected its features.
Secondly: If it has sustained a cut in one in all its corners within 2 cm and this has now not affected its capabilities.
Thirdly: If it indicates symptoms of circulation and use, and has now not sustained harm or harm affecting its appearance, colour or length.
B- Banknotes not match for stream
first of all: Banknotes are deemed no longer suit for circulate if one of the descriptions listed underneath applies to them, and their holders shall be compensated for his or her complete fee [with the exception of damaged notes specified in paragraph (1/b/Secondly/3)] right now upon presentation to government and private banks and their branches. Banks shall subsequently deposit them with this financial institution or one in all its branches, and the equal quantity shall be credited to their debts without imposing any penalty.
If the banknote is worn or damaged no matter not being torn and not having misplaced elements.
If the banknote includes components (with distinct numbers) and its region approximates the vicinity of the unique banknote and is secured with adhesive tape.
If the banknote is secured with one or greater obvious adhesive tapes alongside its length or width.
If the banknote has cuts in more than one nook.
If the banknote is defectively printed (in terms of layout, length, shade, or different security features that the real banknote bears).
If it incorporates stamps or writing that do not have an effect on its external appearance.
If the banknote has misplaced much less than 50% of its region.
Secondly – Banknotes broken due to Burning, Burial or another motive:
Banknotes broken due to burning, burial or any other cause now not mentioned in paragraph (1/b/firstly) will be obtained by way of this bank and its branches exclusively in keeping with the following mechanism:
- Required documents:
a) Civil popularity identification or unified card or departmental identity and residence card with the citizen’s phone quantity.
b) affirmation from a police station or judicial authority within the case of banknotes damaged as a result of gunfire or infected with blood because of accidents.
c) Provision of proof of the supply of budget as follows:
For quantities exceeding 10,000,000 dinars (ten million dinars) up to twenty-five,000,000 dinars (twenty-five million dinars), presentation of departmental identification if an employee is required, or a income slip showing the amount of profits and length of service, or evidence of a supply of earnings commensurate with the amount to be exchanged. A tradesman need to offer evidence of working towards his profession via a professional exercise licence from the applicable sectoral authorities, or a store rent settlement, or manufacturing car registration, and other evidence of a source of earnings commensurate with the quantity.
For quantities exceeding 25,000,000 dinars (twenty-5 million dinars) as much as one hundred,000,000 dinars (100 million dinars), presentation of property ownership files, shares, sales contracts or any legit files proving the legitimacy of the supply of such funds (employer possession deed, partnership or contracting or deliver contract) commensurate with the submitted quantity is required.
- inside the occasion of dissatisfaction with the required documents submitted due to their lack of authenticity or their disproportionality to the submitted amount, the applicant shall be stated the criminal department for the cause of presenting a written undertaking wherein he assumes felony and crook responsibility for the accuracy of the data provided and that such finances got here from legitimate assets and are not connected with any unlawful work or suspicious operations.
three. A penalty of 10% of the value of the damaged banknotes will be levied in favour of this financial institution due to their damage as a result of misuse, burial, burning, or any other cause, excluding banknotes damaged because of circulate as precise in paragraph (1/b/firstly), which shall be exchanged with out enforcing a penalty.
- within the occasion that it isn’t always possible to count number the broken banknotes, they shall be envisioned by way of a committee shaped for this cause, and the committee shall trouble its decision within fifteen operating days.
2- Confiscation of broken Banknotes:
damaged banknotes not healthy for movement as defined underneath will be confiscated, and their holder or the birthday celebration that submitted them will be notified of the confiscation decision. anybody whose banknotes have been refused and confiscated has the right to put up a request to the Governor or his delegate via the Director widespread of difficulty and Treasury or the Director widespread of the bank department to rethink the selection, and the selection of the Governor or his delegate shall be final:
If changes were made to the external appearance of the banknote because of writing, drawing, printing, stamps or containing adhesive fabric.
If the banknote has lost 50% or extra of its vicinity or consists of parts with one aspect, and within the event that there may be proof convincing the crucial bank that the lacking components of the notes have been completely destroyed, partial or full reimbursement will be supplied for them.
3- Confiscation of Counterfeit and Perforated Notes:
a) Counterfeit notes will be confiscated and whoever possessed them shall be supplied with a receipt confirming receipt of such notes by the cashier or a delegated worker on the principal financial institution of Iraq and its branches and all banks and their branches, and the details (variety of counterfeit notes, their denominations, the call of the depositing client in whose deposits they appeared and his account quantity) will be recorded in a check in by the cashier.
b) Confiscated counterfeit notes shall be stamped with the counterfeit stamp bearing the call of the bank and department and despatched to the central bank by reputable letter containing the information in paragraph (a) above.
c) Banks have to act according with our letter numbered (9/four/551) dated 1/12/2024 inside the event of coming across counterfeit notes.
d) A banknote if adjustments had been made to it to make its look similar to a true word by way of setting or joining special elements of counterfeit or non-conforming currency.
e) Banknotes perforated with four holes in a single banknote that leaked from cancelled banknotes organized for destruction in our (Mosul) branch after its profession by using terrorist gangs in 2014, where the holes were sealed for the purpose of circulating them as proven in Annex No. (1), shall be confiscated. The banking system have to confiscate them and supply them to the crucial bank of Iraq.
four- Counting and Sorting Mechanisms:
a) Banks must prepare counting and sorting centres with an area commensurate with the quantity of their deposits, and have to are trying to find to gather current machinery and replace it continuously to make certain the counting and sorting of banknotes acquired from their clients, while using certified people to achieve this, furnished that we are provided with the numbers and styles of machines used at the pinnacle workplace and its branches.
b) Banks shall send their cash deposits to the vaults of this bank and its branches after counting and sorting them and setting apart the broken ones in luggage bundled of precise satisfactory and sealed the use of sewing machines unique for sewing bags, and an additional strip will be located all through sewing to boom the energy of the bag, with adhesive tape of a shade matching the colour of the denomination bundled inside the bag, and an identification card placed at the bag describing its contents of banknotes, the call of the financial institution, the sort of denomination, and the name of the person who bundled the bag, with the deposit date included either on (the bag or the identification card). it’s far foremost to fill every bag with the call of 1 cashier containing (40) bundles, every bundle (1,000 notes) securely tied on both sides with the aid of machines exact for this cause, every package containing (10 packets), every packet containing (100 notes) with two identification playing cards within the first (100) notes and the final (100) notes stamped with a stamp bearing the name of the bank, the 3-component call of 1 cashier, the type of denomination and the date. inside the event that there is a couple of cashier’s call in a single bag or identification papers not belonging to the depositing bank, discrepancies shall be recorded towards the bank.
c) The name of a cashier can not be determined for discrepancies discovered in the financial institution’s deposits if the counting and sorting operations on this bank had been finished via comprehensive machines, and the discrepancies shall be recorded towards the financial institution.
d) One bag (40 bundles) will be filled in styles as follows:
first off: Denominations (250, 500, 1,000, 50,000) dinars shall be vertically (7) bundles for 5 rows, making their variety (35) bundles. As for the closing five bundles, two of them will be horizontally from the perimeters and the remaining three in the middle vertically, making the range (40) bundles.
Secondly: Denominations (five,000, 10,000, 25,000) dinars shall have a base of (4) bundles horizontally in rows and a height of (10) bundles to make the full bundles within the bag (forty) bundles.
e) For organisational purposes, banks should commit to notifying the imperative financial institution of the date and amount of deposits in both currencies (local and overseas).
f) Banks ought to open home windows for replacing damaged and faulty banknotes for the general public, and announce this via identification forums and advertisements, organise a unique check in for broken forex, and deliver it to this bank and its branches, sell stream with banknotes of small denominations, and deliver all bank branches with them.
g) Banks shall deposit broken banknotes received from their clients or from the general public for any amount, even supposing it is a unmarried banknote, supplied they may be well taken care of and in reality broken, and sent with letters explaining their situation and quantities in keeping with a transport timetable to be decided by means of the problem and Treasury branch. inside the occasion that there are banknotes in shape for circulate for your damaged deposits and in massive portions, that is considered a banking violation for which the bank will be held responsible.
h) authorized people to study this bank/difficulty and Treasury branch will be nominated through the electronic platform special for this cause, as well as the names of employees utilized by the bank to move coins deposits into this bank, their addresses and identity files, provided they carry identification badges precise to the financial institution. otherwise, the bank shall bear legal obligation.
i) Correspondence with this financial institution shall be signed with the aid of the Director widespread for government banks and the accredited director for private banks and the regional director for overseas branches or their deputies of their absence.
five- Mechanism for Counting and Sorting Banknotes on the important financial institution of Iraq:
a) penalties imposed on discrepancies found for your deposits of Iraqi banknotes will be calculated as follows:
first of all: Any surplus observed in the bank’s deposits shall be credited to its modern-day account.
Secondly: Any scarcity found inside the bank’s deposits shall be debited to its modern account and a penalty will be imposed inside the manner decided by means of the bank at the cost of the banknotes (shortage), and the penalty price has currently been set at (100%) of the cost of the banknotes with reimbursement for the dearth from its account.
b) in the occasion of coming across counterfeit notes in the bank’s deposits (whether conforming to or one of a kind from the declared denomination), they shall be confiscated and recorded as a shortage in each cases (surplus or shortage of a hundred notes), and the penalty fee shall be recorded within the manner determined with the aid of the bank. The penalty price has presently been set at (500%) of the value of the determined counterfeit notes with reimbursement for the shortage from the bank’s account.
c) whilst Iraqi banknotes seem that differ from the declared banknotes, their variety will be recorded as a shortage in both cases (surplus or shortage of one hundred notes) with imposition of a scarcity penalty of (a hundred%), and the (distinctive denomination) notes determined within the financial institution’s deposits shall be credited to its cutting-edge account.
Fifthly: while non-Iraqi forex denominations seem, they will be brought to the financial institution’s accredited representative and recorded as a shortage in both cases (surplus or shortage of a hundred notes) with imposition of a shortage penalty of (100%) of the declared denomination.
Sixthly: Banknotes perforated with 4 holes stated in paragraph (3/e) observed in the bank’s deposits shall be confiscated and recorded as a scarcity in both instances (surplus or shortage of a hundred notes), with imposition of a scarcity penalty as in paragraph (five/a-Secondly).
b) The financial institution has the right to item to the counting and sorting effects inside one week from the date of being notified of the results, and the bank’s authorised consultant is allowed to view the video recording taken with the aid of surveillance cameras of the manner of starting the bank’s bags.
c) respectable correspondence and communique shall be with the Banks follow-up and Reconciliation segment, and effects of counting and sorting operations and copies of cashiers’ identity papers shall be sent via email (followup.iss@cbiraq.data). identification papers shall be destroyed after seven days from notifying the bank of discrepancies, and the financial institution shall now not have the proper to claim them.
d) Receipt and shipping of deposits or withdrawals of banknotes in each currencies (local and overseas) shall be for the duration of legitimate operating hours, presently set from (eight:30 – 2:00), and no automobiles or persons affiliated with banks will be accepted to enter outdoor these instances. those deposits and withdrawals need to be transported via armoured vehicles from or to this bank. in the occasion that your deposits are not on time beyond the instances cited above for motives convincing to the management of this financial institution and its branches, such deposits may be acquired as a trust for a length now not exceeding one working day by a agree with deposit form, supplied that the obtained quantities are bundled and sealed with the financial institution’s seal in a manner making sure they can’t be opened besides inside the presence of its accredited representative on the morning of the subsequent working day for the purpose of withdrawing the agree with and carrying out the preliminary exam.
e) The obligation of the imperative bank of Iraq and any bank or cashier or any person is on the factor at which the banknotes leave their possession, and it is assumed that the person receiving the banknotes should now not depart the receipt point before confirming the quantity. The recipient of banknotes from this bank may also request to perform counting operations himself and with whomever he desires from the employees of his branch, under the supervision of vital bank staff, consisting of the supply and preparation of all counting necessities such as counting and bundling machines. After finishing the counting manner, the financial institution becomes responsible for the banknotes it can pay even if they endure identification cards of the parties from which they had been received.
f) in the event that the bank discovers an blunders in its deposits (surplus or shortage) earlier than carrying out the counting and sorting operation for those deposits, it ought to notify the issue and Treasury department on the end of the deposit day or at the start of tomorrow by way of sending an official letter specifying the error amount and form of denomination exactly. After the counting and sorting operations for those deposits, affirmation will be made of the conformity of the difference amount with what’s mentioned within the bank’s letter within the presence of the authorized representative, and reimbursement for the dearth from the financial institution with out enforcing a penalty or shipping of the surplus, if any, by reliable record.
g) within the occasion that a bank retains identity cards belonging to the crucial financial institution or every other bank and includes them in its deposits and releases them for stream in that manner, this is taken into consideration a contravention for which the bank shall be held accountable.
6- overseas currency Banknotes
a) cash Deposits: This bank gets deposits of foreign forex banknotes issue to counting and sorting expenses for all denominations and all issues in step with the mechanism set out beneath:
firstly: Compliance with the reliable deposit instances stated in paragraph (five/d).
Secondly: Sending an respectable letter to this bank authorising the financial institution’s personnel to deposit foreign foreign money banknotes by using a deposit slip showing the details of the quantity and stamped with the financial institution’s seal, the call of the permitted consultant and his signature.
Thirdly: Sending an electronic reminiscence tool containing the numbers of the deposited banknotes with a paper listing of numbers for each (one hundred) notes, and inside the occasion of non-conformity of numbers, the numbers recorded by using the bank shall be adopted.
Fourthly: Banks shall send their foreign cash deposits (bucks and euros) after counting and sorting them and packing them in line with foreign money denominations to the vaults of the central financial institution of Iraq and packing them in desirable fine luggage (thick nylon). One bag shall include (10) bundles (ten bundles) as a most, every bundle containing (1,000) notes (one thousand notes) tied securely, disbursed into (10) batches (ten batches), every batch containing (a hundred) notes (100 notes) bundled in nylon baggage and sealed via warmness sealing or stitching them with the distinct device after including a strip to growth the energy of the bag, and placing an identification card at the bag describing its contents of banknotes, the call of the financial institution, the form of denomination and the deposit date, with inclusion of the name of the individual that bundled the bag.
Fifthly: foreign forex banknotes deposited will be counted and taken care of at the identical day, and within the event of discrepancies, the financial institution’s approved representative shall compensate without delay. in the event that counting and sorting them at the same day isn’t feasible, they shall be deposited inside the overseas foreign money vault pending counting and sorting, and the paintings date will be decided later.
Sixthly: Counterfeit overseas notes (bucks and euros) will be confiscated with repayment for the dearth with the aid of the bank’s permitted representative.
Seventhly: in the occasion of a shortage within deposits of foreign foreign money banknotes (greenbacks and euros), it shall be compensated with the aid of the bank’s permitted representative.
Eighthly: whilst a surplus appears in overseas forex banknotes, it shall be delivered to the bank’s approved representative via a receipt of receipt.
Ninthly: when overseas foreign money banknotes seem that fluctuate from the declared banknotes, they shall be replaced with the identical denomination and any scarcity compensated thru the authorised consultant.
Tenthly: One bag shall be crammed through putting two bundles horizontally in rows, making the range of bundles (eight) bundles. As for the remaining bundles, they will be vertically for the 0.33 row, making the variety (10) bundles.
Eleventhly: while broken foreign cash deposits seem within the financial institution’s deposits and are rejected by way of the counting and sorting machines, the financial institution shall have the choice of compensating for the number of notes or this financial institution changing them thru the Federal bank, furnished the financial institution bears the alternate price.
Twelfthly: The bank will be provided with a confirmation receipt inside the occasion that the accounting access can’t be made, and they may be received as a agree with as in paragraph (five/d).
b) coins bills:
first of all: coins payments through the foreign foreign money sale and buy window:
imparting the bank with a written project upon receipt of the participation quantity inside the overseas forex sale and buy window obliging it to distribute the proportion of the organizations collaborating with it in step with the digital distribution of this financial institution and sending the challenge within (forty eight) hours.
Secondly – coins bills from the bank’s balance with this bank:
The financial institution shall commit to filing tables in Excel format with the numbers of overseas foreign money banknotes received distributed to the very last beneficiary in instalments or a single instalment, and inside the occasion that it does no longer distribute all or part of the quantity, we shall be informed by official letter displaying the amount remaining within its vaults.
The financial institution might not publish more than one request to withdraw the quantity in sooner or later.
c) standards relied upon in rejecting foreign currency banknotes (bucks and euros) at some point of counting and sorting operations if one of the descriptions indexed in detail under applies to them:
first off: If it has sustained a reduce in certainly one of its corners or was torn or has misplaced any a part of the notice place.
Secondly: If it has sustained a tear and has been repaired with obvious adhesive tape from any side.
Thirdly: If it contains a large stamp or numerous small stamps that affect its features.
Fourthly: If it indicates signs and symptoms of circulate and use (worn) that affect its appearance or capabilities.
Fifthly: If overseas materials have adhered to it and affected its capabilities consisting of inks, dyes, glues, floor, cooked or paste materials, fats or oils.
Sixthly: If it has been stored in wrong storage situations leading to it yellowing or emitting a musty scent.
7- Mechanism for Transporting coins Deposits
All banks need to use armoured vehicles belonging to them or to entities specialized in transporting funds for the reason of transporting coins deposits from and to this bank and among banks, and provide us with the types and numbers of armoured vehicles or the entity accountable for shipping.
8- Compliance with the commands Set Out Above
inside the occasion that banks do now not follow the applicable commands and banking violations are repeated and there is no response to our letters whilst asked, the problem and Treasury department shall recommend referring the violating bank to the Committee for figuring out consequences Imposed on Banks and Non-Banking financial establishments according with the crucial bank of Iraq law.
9 – The aforementioned commands shall come into force from the date of issuing the letter and shall update all our preceding letters and circulars in this regard.
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