relevant for any bank license, permit or application. The CBI shall establish direct contact with the
relevant foreign supervisory authority in order to verify statements provided pursuant to paragraph (2),
sub-paragraph (m) of Article 5 or paragraph (1), sub-paragraph (e) of Article 6
4
Applications for a banking license or permit shall be rejected if the CBI is not satisfied that
the conditions specified by or pursuant to this Law for issuing such license or permit are fulfilled. The
CBI shall publish by regulation standards that it will apply in evaluating applications for a banking
license or permit.
6. The CBI shall grant a license or permit on being satisfied regarding:
a. the validity of the documents submitted pursuant to Article 5 or Article 6, as applicable;
b. the financial status and history of the applicant;
c. the character and professional experience of the administrators as fit and proper persons;
d. the identity and character of the owners as fit and proper persons, in particular persons with
qualifying holdings;
e. the adequacy of the staffing, operational and financial resources and capital structure of the
proposed bank to cover all obligations and liabilities incurred in the conduct of the proposed banking
activities to be authorized under the license or permit;
f. the soundness of the proposed operations;
g. the viability of the business plan;
h. the applicant's intention to maintain a physical presence at a fixed address in Iraq; and
i. in any case where the applicant is a subsidiary or a foreign bank or bank holding company or
concerning the permit for a branch of a foreign bank, that comprehensive consolidated supervision is
exercised by the relevant foreign supervisory authority.
7. A decision by the CBI to grant a license or permit shall be notified to the applicant and
published in the Official Gazette or if the Official Gazette is not available for such use on a
frequent basis, then published in a widely circulated general publication(s) (here after the "
Official Publication.") Upon issuance of the license or permit, the bank shall be added to the list in the
register of banks.
5
If a license or permit is denied, the CBI shall serve notice of the denial decision
accompanied by a description of the reasons for the denial. If an application remains incomplete or fails
to meet the requirements within three months following receipt of a notification by the CBI pursuant to
paragraph (1) above, the applicant shall be regarded as having abandoned the application. In all cases, the
applicant shall not be entitled to a refund of the application fees paid.
6
Banks must notify the CBI of any changes in circumstances that affect the statements they
made in the license or permit application. A domestic bank shall obtain the CBI's prior approval for any
proposed amendment to its instrument of formation or bylaws. Such amendment or change shall not enter
into force until after the CBI has granted approval and such amendment or change has been recorded in
the register of banks. A foreign bank holding a permit shall notify the CBI of any material changes to the
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