The chairman of ISC, Mr. Hassan Al-Ukaily, announced granting the first custodian license in Iraq

The chairman of Iraq Securities Commission, Mr. Hassan Al-Ukaily, announced granting of the first custodian license to serve in the Iraqi market. Where, today Tuesday 20/9/2022, Iraq Stock Exchange and Elaf Islamic Bank signed a license contract (the custodian bank), after Elaf Islamic Bank completed the requirements of the regulations issued by the commission in this regard, the most important requirements of ISC custodian bank regulations are:  

1.      Obtaining the Central Bank of Iraq approval.

2.      Obtaining Iraq Securities Commission approval.

3.      Obtaining the approval of the Board of Governors of Iraq Stock Exchange

4.      Preparing a headquarter and staff for the custodian bank

5.       The staff should pass the trainings program.

6.       Setting up the Back-office system to manage the tasks set out in the ISC regulations, depending on the outputs of the ISX and Elaf Islamic Bank systems.  

The custodian bank will make Contracts with investors wishing to receive the following services:

1.      Opening Securities account for each investor.

2.      keeping the securities,

3.      notifying the investor with all the decisions and actions taken by joint stock companies and related to the investor's rights associated with their securities,

4.      notifying the investor of all transactions and transfers made on his account within a working day, according to an agreed method of notification.

5.      providing the investor with a detailed monthly account statement that explains all transactions and transfers made on his account, with a statement of his current balance from Securities or cash. And any other tasks in Consistent with the provisions of the regulating legislation under the provisions of the law, instructions and rules.

This step is very important as it is being implemented for the first time in Iraq and will contribute to providing a transparent and fair investment environment as well as reducing investment and financing risks, which will reflect positively on attracting Iraqi, Arab and foreign investors from outside Iraq, Organize the mechanisms of the capital movement according to the mechanisms of the banking system and rules. during this year, there will be licenses for other Iraqi banks, after the banks complete the applicants for obtaining a license according to the ISC Regulations for custodian bank.