Establish a Bank in Iraq
Establishing a bank in Iraq involves a structured licensing process supervised by the Central Bank of Iraq. Investors must demonstrate financial capacity, provide a viable business model, and establish governance, risk, and compliance frameworks before receiving authorization. Banking establishment may be pursued through incorporation of a new entity or via entry as a foreign branch or subsidiary.
The process is multi-stage and requires alignment with regulatory, capital, ownership, and AML standards before commencing operations.
Steps in the establishment process:
- Submission of initial application and feasibility/business plan
- Review of ownership structure and capital sources
- Fit & proper assessment of controllers and management
- Approval of governance and risk management frameworks
- Issuance of preliminary and final CBI authorizations
- Registration with relevant Iraqi authorities
Documentation required from investors:
- Corporate registration and identification documents
- Business plan and financial projections
- Capital and source-of-funds evidence
- Shareholder disclosures
- Proposed Board & senior management profiles
- Risk, audit, and compliance documentation
- AML/KYC policies
CBI compliance expectations
- Satisfy minimum capital requirements
- Meet ownership suitability standards
- Establish risk, audit, and compliance functions
- Implement AML/CFT systems
- Maintain reporting and prudential ratios
- Appoint approved Board and senior management
- Obtain full authorization before commercial activity
How Etihad Can Assist
Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.