The Central Bank of Iraq announced on Thursday that the progress of the Iraqi payment system during the past period led to the control “significantly” on the flow of funds inside Iraq and to provide a comprehensive database and accurate on all transfers within the financial sector and banking, through several procedures and precautions Which has been implemented and is currently working, including the modernization of the payment system in all its components according to international standards.
The bank said in a statement, followed by the Iraqi Economic Center, that the modernization was aimed at absorbing the increasing volume of transactions that are carried out through this system to be easily compatible with various banking systems. The most important systems operating in the Central Bank, the RTGS system, 2006, and the C-ACH Clearing System, which was implemented in 2011, which provides a comprehensive database of all electronic settlement of electronic instruments and inter-bank payment orders. The Central Bank has issued a set of instructions and precautions for banks to limit the risk of exchanging sukuk N through the system. The Central Bank directed the establishment of the National Payments Council of Iraq, which includes members from within and outside the Central Bank, which contributes to the development of strategies for the development of payment and settlement systems and follow-up implementation, and the improvement of international best practices.
The statement pointed out that this bank to implement a number of measures taken, including the application of the IBAN, which aims to consolidate the bank account numbers for all banks operating in Iraq, which allows banks to verify the validity of the transferred account number. Iraq has been included in the list of countries that deal with the international number, which does not accept domestic or foreign transfers except within the international number standards, and in terms of the precautions taken to govern the transfer of funds, especially with regard to electronic instruments transmitted through the system The security specifications of the electronic instruments withdrawn to the banks for the purpose of preventing them from forgery were also unified, as well as the addition of new functions of the system for the purpose of enabling the banks and their branches to control the process of sending and receiving instruments and preventing the passing of forged or stolen instruments. Drawn up for the government banks to be settled on time, and the suspension of instruments that enable the bank to stop any instrument and its location in case of theft or forgery.
The statement pointed out that the Central Bank implemented the internal clearing system between the branches of one bank, which enables government banks that do not have a comprehensive banking system to complete all transfers of branches and provide a comprehensive database to conduct the process of matching efficiently between public administrations and branches.
The statement added that one of the important projects that the Central Bank has implemented is the retail payment infrastructure project, which consists of the national division that supports inter-bank clearing for transfers made by customers and transactions through the use of ATMs and points of sale through credit cards which Linked to the bank account, the mobile payment system, where the funds will be transferred through electronic portfolios without the need for a bank account, and also can make transfers for payment of bills and shopping.
The statement concluded that the recent project to settle the salaries of state employees based on the decisions of the Secretariat of the Council of Ministers No. 313 and 281 to convert the system of payment of salaries to employees, including allocations and benefits to an electronic payment system. By opening bank accounts for employees in banks (government and private and branches of foreign banks) and issuing city cards linked to the account to be withdrawn through ATM machines or through the process of buying from points of sale at the lowest possible costs, as well as benefit from other banking services (such as loans, Online purchasing services, savings accounts, etc.). As this project contributed to the provision of liquidity within the banking sector and the optimum use of financial and banking services inside and outside Iraq.