Mergers of Exchange Companies in Iraq
Mergers between FX companies are subject to regulatory oversight due to the impact on market concentration, ownership transparency, and compliance standards. Mergers may be pursued for scale, capital consolidation, geographic expansion, or to meet regulatory requirements for higher categories.
No merger can proceed without prior CBI approval to ensure suitability of the resulting entity.
Procedures generally required in mergers:
- Submission of merger request to CBI
- Due diligence on both entities
- Assessment of ownership and management structure
- Capital adequacy and financial consolidation
- Amendments to corporate documents and licenses
- Final regulatory approval and registration
Documentation typically required:
- Corporate merger agreements
- Shareholder resolutions
- Financial statements and asset valuations
- Proposed post-merger ownership chart
- Source of funds documentation
- AML/CFT compliance reports
- Capital and branch structure reports
CBI compliance expectations
- Meet the required capital thresholds
- Maintain a compliant ownership structure
- Retain qualified senior management
- Update AML/CFT frameworks and reporting
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.