Shareholder Structure Requirements in Banks
Bank shareholders, especially those holding significant ownership stakes, are subject to supervisory oversight due to their influence on strategic decisions and capital soundness. Ownership of banks in Iraq may be held by individuals, companies, or foreign institutions, but all must comply with ownership thresholds, transparency requirements, and regulatory approvals for significant share acquisitions.
Share transfers or new entries of major shareholders often require prior CBI review to prevent improper influence or financial instability.
Transactions that typically trigger regulatory review:
- Acquisition of significant shareholding percentages
- Transfer of ownership stakes
- Changes in controlling shareholders
- Foreign shareholder entry
- Capital increases or capital restructuring
Documentation typically required:
- Shareholder identification and corporate documents
- Source of funds disclosure
- Financial statements or net worth statements
- Business profile of corporate shareholders
- Declarations regarding legal standing
- Board/Shareholder resolutions
CBI compliance expectations
- Maintain transparent shareholding records
- Obtain CBI approval for qualifying holdings
- Ensure shareholder financial soundness
- Prevent non-approved control or influence
- Comply with capital adequacy requirements linked to ownership
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.