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The Central Bank of Iraq reveals the mechanism for granting license applications for electronic payment companies

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The Central Bank of Iraq reveals the mechanism for granting license applications for electronic payment companies
February 18, 2024
     The Central Bank of Iraq revealed the mechanism for accepting and studying applications for granting licenses to electronic payment companies, confirming the continued receipt of licensing applications.
The Central Bank specified that the applicant,
     whether a natural or legal person,
     must have at least three years of experience in the field of electronic payment and the payments industry, and
     this includes the founders and participants, indicating that the
     application includes a detailed explanation of the added value to the electronic payment sector in Iraq that will be provided by the company to be licensed.
Especially in the field of modern collection techniques and enriching the Iraqi market with distinguished and applicable service.
     The bank stressed the necessity of submitting a request for a detailed technical feasibility study of what the company to be licensed will provide, pointing out that the request includes the minimum standards for accepting applications for obtaining a license to operate as an electronic payment service provider, in addition to what is stated in the electronic money payment services system No. (3). For the year 2014.
     The bank confirmed that it will reject all applications that do not meet the aforementioned licensing conditions.
     :diamonds: To view the minimum standards for accepting applications to obtain a license to operate as an electronic payment service provider. Click here.  https://cbi.iq/static/uploads/up/file-17082531764307.pdf
     Central Bank of Iraq
     information Office
     18 - February – 2024


[approximate translation of  https://cbi.iq/static/uploads/up/file-17082531764307.pdf ]    

Minimum standards for accepting applications to obtain a license to operate as an electronic payment service provider, in addition
As stated in the electronic payment services system
1 | Experience in the field of financial services and electronic payment: 
Applicants must have experience in the financial services industry and management, especially payment
It is also preferable to be a shareholder from one of the leading companies in the field of technology ol
C Electronic payment in other countries, in addition to the organizational and technical skills necessary to operate the system
and risk management related to it.
2 | Solvency:
A: The applicant must have a strong and stable financial ability to operate the electronic payment service effectively
To deal with potential financial challenges, it is assessed through an institutional investment review
The company works in various commercial fields.
B- Local and foreign shareholders (companies) must submit proof that they have achieved a profit for the last three years
Years and the license of the sectoral entity within the country for the local shareholder and in the home country for the foreign shareholder
With the license of the sectoral authority that granted the license, certified by the embassy of his country in Iraq.
C- Individual shareholders must submit documents proving the sources of funds, in addition to a statement
Account for the last three years.
3 | Technical innovation and added value:   
The submitted proposal must include providing technical solutions that enhance this bank’s strategy to shift towards payment and collection
Electronically, it is preferable to include attracting modern technology in the payments industry
The services to be provided are different and superior to the services currently provided in the market and will create a qualitative breakthrough
In this area.
4 | Outstanding customer services: The applicant must provide excellent support services to customers to meet their needs
-Customer Protection Program: When submitting a registration application, submitting the customer protection programs includes a description
Customer protection measures
Provided that the dispute resolution mechanism and necessary measures are in place to protect and preserve customer funds in cases where...
This requires the privacy and information protection policy and the fees and commissions for each service.
5 | Integrity and transparency:  
Necessary measures are taken by this department to inquire about the legal position of the company's founders
Natural and legal persons and address the Office of the Compliance Controller and the Legal Department at this bank
The Office of Combating Money Laundering and Terrorist Financing and law enforcement agencies. |
6 | Position of the foreign shareholder:  
The foreign shareholder (companies or individuals) or one of the foreign administrations must provide proof of integrity
Their security and financial position and evidence of their non-involvement in money laundering and terrorist financing crimes from their country
The mother is certified by their embassy in Iraq.

7 | Fraud management and anti-money laundering:  
  The offer must include the procedures and systems that the company will use to limit operations
Fraud, anti-money laundering, terrorist financing, know-your-customer procedures and risks
The other.
8 | Company strategy:
1. The general objectives of the company.
2. Comprehensive feasibility study:
  The applicant must attach a feasibility study prepared by a specialized consulting office from the listed offices
Their names are included in the bulletin of consulting offices licensed and issued by the Association of Accountants and Auditors in both languages
Demand contracts, strategy provider such as aspects, from the lowest many and English and include as much as Arabic
Related to the provision of payments services, the proposed operating model, risk management, and financial flow chart
Funds, organizational structure, customer protection policies, IT infrastructure, and scalability
Proposers, risk staff and qualifications of the commissioner, of the director's scientific and interoperability qualifications
The main procedures affecting the applicant, anti-money laundering and terrorist financing procedures, and the bank
Settlement. The feasibility study must also include a realistic assessment of the current state of the electronic payment industry
In Iraq and measuring the chances of success of the company to be established in this sector.
3. Analyze the strengths and weaknesses, challenges and risks that each service may face.
It is planned to be launched during the period during which the study and appropriate solutions and alternatives to confront it are being prepared.
4. Future financial expectations in addition to expectations that the applicant will meet
With the license to operate the necessary operational and technical requirements according to capital requirements Granted.
9 | Information security and customer protection:
The company must be able to adopt the best international standards for information security and protection
Customers and their privacy.
10 | Activities that the company wishes to engage in in the field of electronic payment:
11 | The company’s intention to engage in other activities outside the scope of the required license:
The extent to which other activities are related and their impact on the company’s main activity
12 | CV of the proposed managing director and shareholders:
The proposed authorized director must have successful experience in the electronic payment sector.
13 | Evaluation of the company based on an interview with shareholders and founders:
The company is evaluated based on interviews and data submitted to the Payment Service Providers Monitoring Department Email


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