Payments & FX Restrictions
Payments & FX Restrictions Cross-border payments introduce currency, AML, and sanctions risks. In Iraq, foreign exchange transactions are regulated, and EPSPs must comply with rules governing international remittances, foreign currency usage, and settlement arrangements. Not all EPSPs are permitted to perform cross-border functions without additional approvals. Compliance Considerations Currency controls and FX rules Sanctions and correspondent banking requirements AML/CFT and reporting obligations Licensing for remittance activities Operational Requirements Documentation for cross-border transfers Customer due diligence for international payments Settlement through approved channels CBI Compliance Obtain approval for FX or remittance services Report cross-border transaction data Enforce AML risk mitigation for foreign transfers Comply with foreign currency supervisory controls 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.
ISP Licensing Requirements in Iraq
ISP Licensing Requirements in Iraq – CMC The Communications and Media Commission (CMC) of Iraq has issued the official ISP Licensing Requirements governing the provision of internet services in Iraq. These requirements were issued pursuant to CMC Decision No. (175/Q/2023) dated 12 September 2023, and form the primary regulatory framework for licensing Internet Service Providers (ISPs) operating in the Iraqi market. 🧾 Licensing Scope and Classification The CMC classifies ISP licenses into three categories (A, B, and C), depending on the scope of operations, geographic coverage, and infrastructure ownership. Category A licenses apply to nationwide operators with full infrastructure capabilities, while Category B licenses apply to regional or governorate-level operators. Category C licenses are granted to service providers that deliver internet services to end users through licensed primary or regional operators. ⚙️ Technical Requirements Applicants are required to submit detailed technical documentation describing the nature of their internet services, operational coverage, network infrastructure, and distribution mechanisms. This includes providing information on service delivery areas, branch offices across governorates, technical management personnel, tower locations, repeaters, and distribution agents. Applicants must also maintain an official website and specify the requested license duration and classification. ⚖️ Legal Requirements The licensing framework requires applicants to submit a complete set of legal documents, including a valid company incorporation contract, certificate of incorporation, shareholders’ resolutions, confirmation from the Companies Registrar, and tax and social security clearance certificates. Foreign companies must provide evidence of branch registration in Iraq. Applicants must also submit declarations confirming compliance with CMC regulations and Iraqi laws, including the obligation to conduct transactions in Iraqi dinars. 💰 Financial Requirements The CMC has set specific licensing fees and financial guarantees based on license classification. Category A licenses require a comprehensive nationwide license fee of IQD 2 billion annually, in addition to a performance guarantee of the same amount. Category B and C licenses are subject to annual licensing fees determined per governorate, with fees varying by location. Applicants must also submit a performance bond, the value of which increases based on the duration of the license. 🏗️ Operational Capacity and Experience License holders are required to demonstrate minimum capital thresholds, technical expertise, and operational capacity. Category A licensees must have a minimum capital of IQD 2 billion and proven experience of no less than five years in the telecommunications or ICT sector. Category B and C licensees are subject to proportionate capital and experience requirements based on their license classification and service scope. ⚠️ Compliance and Enforcement ISP licensees are subject to ongoing regulatory oversight by the CMC. Failure to comply with licensing conditions, technical standards, or financial obligations may result in regulatory action, including suspension or revocation of the license. The CMC reserves the right to monitor operations and enforce compliance throughout the license term. 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.
Iraq CMC Update: New Licensing Regulations for GPS Tracking Systems
Iraq CMC Issues New rEGULATIONS and Instructions for Licensing and Use of GPS Tracking Systems The Communications and Media Commission (CMC) of Iraq has issued new regulations and instructions regulating the licensing, use, and operation of Global Positioning System (GPS) Tracking Systems in Iraq. These instructions fall within the CMC’s regulatory authority over telecommunications and technology-based services that involve tracking, monitoring, and positioning systems. Licensing and Regulatory Requirements Under the newly issued regulations, companies providing or operating GPS tracking services are required to obtain prior licensing and approval from the CMC. The regulation applies to entities offering GPS-based services for vehicle tracking, asset monitoring, fleet management, and other location-based applications. Any company engaging in such activities must ensure that its operations are properly licensed and compliant with the CMC’s regulatory framework. Data Protection and System Use The instructions emphasize the importance of compliance with technical, security, and data protection standards, particularly where GPS tracking systems involve the collection, processing, or transmission of location data. Unauthorized use of GPS technology or operation without the required license may result in regulatory measures, including suspension of activities or other legal consequences. Scope of Application These instructions are relevant to companies operating in sectors such as logistics, transportation, security services, fleet management, and technology solutions, as well as any business using GPS tracking systems as part of its operational or commercial activities. Compliance Considerations Companies are advised to assess whether their business activities fall within the scope of the GPS tracking regulations and, where applicable, to initiate the necessary licensing procedures with the CMC. Internal policies and operational practices should be reviewed to ensure alignment with the new regulatory regulations. 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.
Iraq Call Center Regulation Update: Registrar Issues New Licensing Instructions
Iraq Call Center Regulation Update: Registrar Issues New Licensing Instructions The Companies Registration Department, in coordination with the Communications and Media Commission, has issued new regulatory instructions governing companies operating in the call center services sector in Iraq. Key Regulatory Updates New instructions regulate the operation of call center services The instructions apply to all companies providing call center services in Iraq Companies are required to review and regularize their legal status in accordance with the new regulatory framework Licensing Requirement Companies must approach the Communications and Media Commission (CMC) to: Obtain the required licenses Correct their legal and regulatory status The deadline for compliance is six (6) months from the official publication date of the regulatory instructions Companies operating without the required license will not be granted any extensions Enforcement Measure Any company continuing call center activities without obtaining the required license: Will be considered non-compliant May face regulatory action or suspension of activities Scope of Application Call center service providers Customer support and telemarketing companies Outsourced contact center operators Local and foreign companies providing call center services in Iraq What Companies Should Do Review whether their activities fall under call center services Examine the newly issued regulatory instructions Initiate licensing procedures with the Communications and Media Commission Complete compliance within the prescribed six-month period 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.
Labour-Intensive Companies Required to Submit Anti-Human Trafficking Declarations
Iraq – Labour-Intensive Companies Required to Submit Anti-Human Trafficking Declarations In line with Iraq’s annual action plan to combat human trafficking, the registrar of companies issued a new compliance obligations have been introduced for companies operating with labour-intensive activities. Key Regulatory Updates The requirement is issued pursuant to the 2025 national plan to combat human trafficking in Iraq Companies that employ manual or labour-intensive workforces are required to submit an official declaration The declaration must confirm the company’s adoption of corporate social responsibility policies aimed at preventing human trafficking Required Declaration Must Confirm: Commitment to protecting workers’ rights Monitoring and oversight of supply chains Non-involvement in any exploitative or abusive labour practices Implementation of clear internal procedures to prevent human trafficking risks Reporting Obligation The declaration must be submitted annually Submission is required to the competent government authority Documentation may be reviewed as part of compliance or inspection procedures What Companies Should Do Review current labour practices and internal policies Adopt or update anti-human trafficking and CSR policies Prepare the required formal declaration Ensure timely annual submission to the competent authority 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.
Iraq Proof of Payment of Government Utility Fees Now Mandatory
Iraq Companies Registration Update: Proof of Payment of Government Utility Fees Now Mandatory The Companies Registration Department has issued a new announcement imposing additional compliance requirements on all companies in relation to outstanding government utility fees. Key Regulatory Updates The announcement is issued pursuant to an official directive from the General Secretariat of the Council of Ministers The directive is based on Article (18) of the Federal General Budget Law for the years 2023–2025 Companies are required to submit proof of payment for: Water service fees Electricity service feesowed to government entities New Enforcement Measure Companies must provide evidence that all outstanding utility bills have been settled Failure to submit proof of payment will result in: Suspension of transaction processing No transactions will be completed starting from the following week if proof is not attached 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.
Iraq Security & Transport Update: Mandatory Approval for Transport of Hazardous Materials
Iraq Security & Transport Update: Mandatory Approval for Transport of Hazardous Materials A new directive issued pursuant to a decision of the Iraqi National Security Council introduces mandatory compliance requirements for companies engaged in transport activities involving hazardous materials. Key Regulatory Updates The directive is issued pursuant to National Security Council Decision No. (3) adopted in session (3/2024) All companies engaged in transport activities are required to Contact and coordinate with the General Company for Land Transport The purpose is to obtain initial approvals required for Transport of hazardous materials Companies transporting hazardous materials are to be treated as national carriers of hazardous materials under the decision Scope of Application Companies engaged in land transport activities Logistics and transport companies handling hazardous or sensitive materials Companies involved in supply chains requiring movement of regulated materials What Companies Should Do Review whether their activities involve transport of hazardous materials Coordinate with the General Company for Land Transport Obtain the required initial security and regulatory approvals Ensure internal compliance with transport and national security requirements 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.
Iraq E-Commerce Update: New Instructions Issued Under the Electronic Commerce Regulation
Iraq E-Commerce Update: New Regulatory Instructions Issued Under the Electronic Commerce Framework Recent official correspondence confirms the issuance of new regulatory instructions governing electronic commerce activities in Iraq, impacting digital businesses and online platforms. Key Regulatory Updates Issuance of official instructions related to the Electronic Commerce Regulation Instructions issued pursuant to Regulation No. (3) of 2025 Circulation of an English-language version of the regulation Clarification of: Regulatory requirements for electronic commerce Required documentation Application procedures for electronic merchant platforms Scope of Application E-commerce platforms operating in Iraq Digital and online businesses offering goods or services FinTech companies engaging in digital trade activities Foreign companies providing online services to the Iraqi market What Businesses Should Do Review the Electronic Commerce Regulation and related instructions Assess whether their activities fall within the scope of electronic commerce Prepare required documents and compliance information Align internal operations with digital business regulatory requirements Alignment with Banking & FinTech / Digital Business Services This update is directly relevant to FinTech operators, digital platforms, and online businesses. Our Banking & FinTech / Digital Business advisory services support clients with: Regulatory assessment of digital business models Compliance with electronic commerce and digital trade regulations Documentation preparation and regulatory filings Ongoing regulatory risk management for digital operations As Iraq continues to strengthen its digital economy regulatory framework, proactive compliance with electronic commerce regulations is essential to ensure operational continuity and regulatory certainty. 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.
Iraq AML Update: Companies Required to Disclose Shareholders Holding 10% or More
Iraq AML Update – Shareholder Disclosure Requirements Recent regulatory correspondence requires joint stock companies to provide the Companies Registration Department with updated information on shareholders holding not less than 10% of the company’s shares. Key Update Highlights Companies must submit the names of shareholders owning 10% or more of company shares The requirement applies to joint stock companies The purpose is to support sectoral risk assessment updates The measure aims to mitigate risks related to: Misuse of legal entities Money laundering Terrorist financing Regulatory Objective Enhancing transparency of ownership structures Identifying beneficial owners Strengthening AML/CFT compliance frameworks What Companies Should Do? Review current shareholding structure Identify shareholders meeting the 10% threshold Ensure accurate and up-to-date disclosure to the Companies Registration Department Align internal records with AML/CFT requirements Why This Update Matters: Failure to maintain accurate ownership disclosures may expose companies to regulatory scrutiny, compliance risks, or penalties, particularly in the context of AML/CFT enforcement. 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.
Iraqi Official Gazette: Legal Enforceability of Laws in Iraq
Iraqi Official Gazette: Legal Enforceability of Laws in Iraq The Iraqi Official Gazette (Al-Waqa’i Al-Iraqiya) is the sole official publication for laws, regulations, instructions, and decisions in Iraq. As a matter of law, no legislation is legally enforceable unless it is published in the Gazette. For companies and investors, the publication date determines the effective date of legal obligations, compliance deadlines, and penalties. Courts, government authorities, and regulators rely exclusively on the Gazette as the authoritative legal reference. Monitoring the Iraqi Official Gazette is therefore essential for businesses operating in Iraq to ensure regulatory compliance and avoid legal exposure.