The law (9) 2021 act
The law of the central monetary and payments office for the north-east Syria
The first chapter
General Terms
Subject (1):the establishment of the central monetary and payments office:
A– by this law , the central monetary and payments office has established .this office has a legal and juridical personality. This office has sub- offices in the autonomous administration of north-east Syria
b– this office shall have a permanent and continuous presence
c-the terms of references, and organization of office shall be determined as provided by this law
d– the office is an independent and professional constitution is formed by the general council of northen-eastern Syria. This office is not controlled by any effects and political powers
subject (2): Definitions
– The autonomous administration: the democratic autonomous administration of north-east Syria
– A financial authority: the financial authority for autonomous administration of north –east Syria
-Bank: the legal person who is authorized by the central monetary and payments office to procedure all banking transactions, to work in the field of bank deposits in the area which is controlled by the AANES, and use these funds totally or partially to extend credit or investment for the person’s account who exercises work on his /her charge
Credit: Any direct or indirect obligation to disburse a sum of money against the right to pay the sum of the expense and due and to pay interest or other fees on this amount, any extension of debt maturity date, any guarantee of debt repayment issued Any obligation to obtain the right to payment of a sum of money and the term credit does not include bank deposits and the purchase of debt bonds on the secondary market.
The office : the central monetary and payments office.
Debt security: An interchangeable debt instrument and any other instrument equivalent to an indebtedness instrument whether it is in authenticity or notebook form.
Financial Institutions: A bank or other legal person that engages in providing credit or investments for the account and responsibility of the person who carries out the business.
Money Changer: Any person licensed to engage in exchange business by a cash desk and central payments.
Exchange business dealing in foreign currencies in accordance with the regulations issued by the office.
Guidelines: Non-mandatory recommendations or policy statements issued by the Central Monetary and Payment office to inform banks and other parties involved in the office’s operations.
International Accounting Standards: The latest international accounting standards issued by the International Accounting Standards Committee.
Order: The mandatory directives issued by the Central Monetary and Payments Office
Reasonable Fees: Fees that bear the direct and indirect costs incurred by the relevant mandatory decision-making authority and financial institutions.
The Board of Directors: The Board of Directors except Paragraph (a) of Article (17) of this law.
Article (3): Powers of the office:
a– Conclusion of contracts.
b- Possession, possession or disposition of property in whether if the title is immovable.
Article (4): General Powers of the Office:
A- The office exercises all the powers vested in it, whether under the provisions of the current law, or the provisions of other applicable laws, as well as necessary to carry out its work.
B– The office enjoys operational and administrative independence except for what is stipulated in this law, and no person may improperly seek to influence any employee in the office or any member of its board of directors while performing its duties or interfere in the activities of the office.
Article (5) The main objectives of the office:
A- Adopting an effective and secure system for local payments.
B– Ensuring the liquidity, solvency and efficient performance of banking system in a stable market-based manner.
Article (6) The office’s specific powers:
A- Recommend general guidelines for monetary, financial and economic policies to the Autonomous Administration institutions.
B- Formulate, implement and supervise procedures for payment and settlement systems and organizing transactions in local and foreign currency.
C – Owning and operating one or more payment systems.
D – Acting as a banker and financial agent for the Financial Authority and providing financial advice upon its request.
E – Maintain deposits in foreign currencies for the financial authority and other bodies.
F – Ensure the provision of sufficient bank notes in legal currencies to settle monetary transactions.
G – Maintaining a depository center for the safekeeping of currencies and securities.
H- Licensing, regulating and supervising banks.
I – Controlling and regulating foreign exchange dealers.
K – Conducting regular economic and critical analysis of the economy in the region, announcing the results, and presenting proposals and measures to self-administration based on this analysis.
M – Consultation with the Finance Authority in order to coordinate policies to the extent that does not conflict with its mandate under this law.
N –Regulation and seizure of precious metals.
Article (7): Cooperation:
A-The office provides general information as required periodically to the finance authority and other bodies with regard to currencies, payments, banking and financial affairs These bodies shall provide information Macroeconomics and financial matters to office if requested.
B- The office cooperates with the rest of the Autonomous Administration institutions in achieving its objectives.
Article (8) Technical Cooperation:
A- The office has the right to participate in meetings of councils and international organizations related to the technical aspects of currency and its field.
B- the competence of the office is to provide currencies, payments and services for the benefit of foreign governments, foreign banks, foreign monetary authorities, and public international organizations and other international institutions
Article (9): General Information:
The office informs clients and the Finance Authority on a regular, timely basis of its analysis of macroeconomic and financial market developments, and the relevant statistical information.
Article (10) Office Branches:
The headquarters of the office shall be determined by a decision of the Executive Council of the Autonomous Administration of North and East Syria, and the Central Cash and Payments Office may establish branches, agencies, and operations facilities in the places it deems necessary.
Article (11): Accounts:
A- The office may open accounts in its books only on behalf of the Finance Authority and other bodies, banks operating legally within the Autonomous Administration areas, foreign banks, public international financial institutions and donor organizations, and the office may not open accounts for private persons or private institutions.
B – All liabilities of the office’s deposit account must have corresponding assets as stipulated in Article (48) of this law.
Chapter two: financial provisions
Article (12)
The capital:
A- The authorized capital of office for the office shall not be less than fifteen millions US dollars and later the capital and general reserve accounts shall be equal to (5%) of the total amount of the credit balances of all accounts kept in the office by the account holders shown in the balance sheet of the office at the end of each financial year and the capital can be increased by the amounts that May be determined by the office and after being approved by it, and the capital of the office is not subject to mortgage.
B – the capital is not reduced except by issuing a law from the General Council.
C– The Finance Authority shall, within one month after the publication of the balance sheet, do its utmost, and within the limits of the available resources, to make a financial contribution to the capital of the office in the amount or amounts necessary to correct this deficit, specifically in the following cases:
1- If it appears from the monthly balance sheet The firm’s initial value of assets is less than the sum of its liabilities and the applicable authorized rate .
2-If it turns out that the net profit is insufficient to increase
the capital and general reserve accounts to a level equivalent to (5%) of the total amount of the credit balances of all accounts kept in the books of the office by the account holders appearing in the balance sheet of the office for the end of that financial year.
Article (13): Determination and Allocation of Income:
A- The net profit or net loss for each financial year is calculated for the office in accordance with international accounting standards.
- The net income is allocated every year to the general reserve account until the capital and general reserve accounts are equal to (5%) of the total amount of credit balances for all accounts kept in the books of the office for the account holders shown in the budget
The general assembly of the office at the end of each fiscal year, and the board of directors may increase the percentage stipulated in this paragraph and may not reduce it.
C – According to the application of paragraph (b) of this article, any balance of the net income is transferred to the Finance Commission as revenues for the general budget of the Autonomous Administration.
D- If there is a loss, it is not charged to the account of the company to the general or to the public
Article (14) Annual Budget:
All actual expenditures proposed for the office are included in an annual budget approved by the Board of Directors and submitted for information to the Finance Commission.
Chapter III
Organizational Structure of the Office
Article (15)
A – Board of Directors of the Office has nine members
B – The executive management has four members
C – employees
Article (16)
A- The Board of Directors sets and approves the office’s operations policies and supervises their implementation.
B – The office staff shall submit reports of not less than ten reports annually to the Board of Directors on the progress and implementation of its policies, the soundness of the financial system, the condition of the cash, and foreign capital, including all events and circumstances that have or are expected to have an effect on management or operations) of the office or the management of its policies or the financial system or the aforementioned markets.
Article (17) Formation of the Board of Directors Office:
First: the formation mechanism:
A – The Board of Directors consists of nine members who have the right to vote:
1- Co-chair of the Central Monetary and Payments Office.
2– Vice Presidency for Payments Affairs.
3- Vice Presidency for Control and Regulation Affairs.
4- One of the co-chairs of the Finance Authority for North and East Syria.
5- One of the co-chairs of the Economic Commission for North and East Syria.
6-Three experts in financial affairs, monetary and macroeconomics.
B- The co-chairmanship of the Central Monetary and Payments Office and the two co-chairmen are appointed by the General Council and upon a proposal from the Finance Commission.
C- The members of the board of directors appointed in accordance with the previous paragraph (b) of this custom, and one of the co-chairs of each of the Economic Commission and the Finance Commission selects the experts in the council administration.
Second: Terms of appointment.
Those who are selected as members of the Board of Directors are required to be persons with integrity and recognized professional expertise in currency, payments or financial matters and banking.
Third: Duration of membership:
A – The term of office of each member of the Board of Directors is five years.
B -The members of the Board of Directors must be appointed in chronological order.
C – Members may hold the position more than once.
Article (18): Powers and Responsibilities of the Board of Directors of the Office:
. Argued in Article (6) of this
A- Determining the monetary policies to implement the powers of the office, which are explained by the law and supervising their implementation by management and employees.
B – Adoption of all decisions, rules, and the principles issued by the office.
C – Approval of all reports and recommendations submitted by the office to the institutions of the autonomous administration.
D- Submitting recommendations to the Autonomous Administration institutions regarding the participation of the Central Cash and Payments office in technical consultations with international organizations.
E- determine the structural organization of the office.
G- Approval of the financial organization of the office.
H- Approval of the appointment of the inspector general of the office. – Appointment of administration staff in the office.
- Establishing and closing branch offices. affiliated to the office. Two employees, agents and reporters in the office.
K- Determining the accounting policies of the Central Cash and Payments Office and approving the periodic reports and financial statements of the office.
l- A decision on the incurrence of debt is made by the Central Monetary and Payment Bureau and the terms and conditions of such debt.
M- Determine the types of assets that must be suitable for investing the financial resources of the Central Cash and Payments office.
N- Approval or rejection of bank licensing applications. o Cancellation of banking licenses.
- Appointing an independent external auditor to carry out the annual audit work in the office.
Q – Establishment of committees with key oversight responsibilities for specific aspects of the office’s business
such as auditing, risk management and compliance
R- Review the quarterly reports and other reports issued by the Inspector General.
Article (19) Remunerations of the members of the Board of Directors of the office:
The Board of Directors receives financial remuneration from the office that approximates and does not exceed the general rate of remuneration received by persons who occupy executive or non-executive positions in supervisory or administrative boards or in financial or commercial institutions in the region, taking into account the situation Financial self-management.
Article (20) Ineligibility to work in the office’s board of directors:
It is not permissible for any person to be a member of the board of directors of the office if:
a- This person is an official or an employee of a bank that has offices in the areas of autonomy.
B – owner ( 5%) or more of the equity in a bank (except He was a beneficial).
C- Ownership rights in one of the co-chairs of each of the Finance and Economic Commission who are members of the Board of Directors according to the provisions of this law.
E – A member of the Executive Council of the Democratic Autonomous Administration and Eastern Syria
- Member of the General Council of the Democratic Autonomous Administration of North and East Syria.
- The provisions of incapacity and dismissal under Article (21) of this Law apply to him.
Article (21) Disqualification and dismissal of members of the Board of Directors of an office:
Any member of the four board of directors approved by the General Council shall be dismissed by it, while the three experts appointed by the Board of Directors shall be dismissed by the Board of Directors, in one of the following cases:
1-He became ineligible for membership of the Board of Directors in accordance with Article (20) of this Law.
2- Convicted of a felony or infamous crime
3- A final judicial decision was taken against him, claiming bankruptcy or insolvency.
4- He was dismissed by a competent authority or suspended from his profession due to his misconduct.
5- Council members found that he was involved in illegal acts.
6-He became unable to perform the functions of this position due to physical or mental disability lasting for more than two months.
7- He absent from attending three consecutive meetings of the Board of Directors without justifying the Board’s opinion.
Article (22): Resignation:
Any member of the Board of Directors has the right to resign by giving written notice of no less than month to the board of directors.
Article (23) Filling a vacancy in the office’s board of directors:
Any vacancy in the Board of Directors shall be filled by appointing a new member in accordance with the provisions of Article (17) of this Law within four months from the date of the vacancy.
Article (24) Meetings of the Board of Directors of the Office:
A– The co-presidency or one of them presides over the meetings of the Board of Directors, and in the event of their absence, it is chaired by the Deputy Co-President for Payments Affairs, and in the event of his absence, it is chaired by the Vice-Chairman for Control and Regulation Affairs.
B– The Board of Directors meets as often as the office’s business requires, but not less than once a month.
C- The co-presidency calls for meetings of the Board of Directors, and they may be held based on a written request from two members of the Board of Directors.
- Board meetings shall be held by informing all members of the Board of Directors of the date, place and agenda of the meeting at least five working days prior to the date set for the meeting. In case of emergency, meetings may be held with shorter notice.
E – The quorum for the conduct of business at any meeting of the Board of Directors shall consist of Five members at least members of the Board of Directors.
F – And unless the current law stipulates otherwise, the decisions of the Board of Directors shall be approved by the majority of the members present, and meetings and voting may be held through flexible communication technology, or other approved electronic means of communication.
G- Subject to the quorum requirements in Paragraph (e) of this Article, no action or action issued by the Board of Directors may be nullified just because there is a vacancy or vacancies in the Board of Directors.
- All actions by a member of the Board of Directors as a person acting in good faith, even if The process of appointing that person as a person, or his qualifications or qualifications hereafter, shall be deemed to be valid.
Article (25) Proceedings of the meeting of the Board of Directors of the office:
A – Minutes of meetings shall be kept. The Board may make the results of its deliberations public on any subject, and all its decisions on matters of public policy shall be promptly published.
B- The minutes of every meeting held for the Board of Directors shall be signed by the co-presidency or the presiding member, the secretary and the attending members of the Board of Directors.
C- A secretary for the meetings of the Board of Directors shall be appointed from among the office’s senior staff by a decision of the co-presidency, and he shall be assigned to attend all meetings of the Board, keep all records of the office and carry out other functions as indicated in the internal bylaws of the office. The secretary may not be a member of the Board of Directors.
Article (26): Disclosure of the office’s Board of Directors’ Fiduciary Duties:
A- The members of the Board of Directors must fully and periodically disclose to the Board of Directors their significant financial shares, which they may own in person or by a member of their family, directly or indirectly, and these disclosures must comply with the guidelines approved by the Board of Directors.
B- When any issue related to the interest of any member of the Board of Directors is presented to the Board of Directors, the concerned member must disclose the interest he has at the beginning of the discussion and may not participate in the discussion and decision-making on this issue. However, his attendance at the session is approved for the purposes of obtaining on the quorum.
C- The members of the Board of Directors and the employees of the office have a fiduciary duty towards the office and towards its clients, and they must put the interests of the office and the interests of its clients before their financial interest.
Article (27) Formation of the Office Management:
The management of the office consists of the co-presidency, the vice-presidency for Payments Affairs and the co-presidency for Control and Regulation Affairs.
Article (28) Subsequent positions of the members of the office’s board of directors:
The former members of the Board of Directors of the Central Office of Cash and Payments do not work in a professional capacity in a bank in northern and eastern Syria during the year period following their departure from the office.
Article: (29) Powers of the Joint Presidency of the office:
A- The co-presidency of the Board of Directors acts as the executive presidency of the Cash and Payments Bureau, and they are responsible for the daily work of the office, and in the event of their absence or their inability to carry out their duties for any other reason, the Deputy Co-Chairman for Payments Affairs replaces them, and in his absence, he moves to the Vice-Chairmanship for Control Affairs systems, and serves as the chief executive officer of the office.
- The co-presidency is responsible before the Board of Directors for the implementation of its decisions, and for directing and controlling the management and operations of the office.
C- All powers not specifically assigned to the Board of Directors must be the prerogative of the co-presidency, and it has the right to take all actions required or recommended for the management or operations of the office, including entering into contractual obligations on behalf of the office, appointing employees, agents and correspondents in the office, and representing the office In general, the joint presidency may, with the approval of the Board of Directors, delegate some of its functions to employees.
- The Deputy Co-Presidency for Payments Affairs shall be considered responsible to it, and after consultation with the Co-Presidency, he shall have the powers to take enforcement measures with regard to licensing regulations and oversight of the payment systems stipulated in this law or other laws.
D -The deputy of the co-presidency for oversight and systems affairs is responsible before it, and after consultation with the co-presidency he has powers to take the measures and actions that must be taken in matters of oversight and the organization of operations in the office stipulated in this law or other laws.
Article (30): Inspector General of the Office
A- The inspector general of the office is selected according to the staffing mechanism established by the Board of Directors, and is appointed by the co-presidency with the approval of the Board of Directors , he has the same qualifications as a member of the Board of Directors.
- The duties of the Inspector General include:
1-Evaluate the quality of the proposed and adopted financial management and control systems.
2- Testing the operation of these systems and ensuring the integrity of the resulting information and transactions
3-Testing the adequacy of controls to protect the office, and, if necessary, verifying the existence of assets.
4-Test compliance with laws, regulations, administrative directives, rules, decisions and policies governing the operations of the Office.
5-Conduct audits of the effective and efficient use of the Office’s resources and make appropriate recommendations to the Department.
6- Conducting special reviews when requested by the administration and communicating with the auditors of the office.
7-Submission of quarterly reports to the Board of Directors and any other reports appearing that may be advisable to submit them, and at the minimum the reports should show the Inspector General’s activities and inquiries about the audit and recommendations.
C- The Inspector General may resign from his position after submitting a notice period of not less than two months to the joint presidency, and he may not be removed from his position except by a decision of the Board of Directors supported by one or more of them except by a decision of the Board of Directors supported by one or more of the reasons for removal stipulated in Article (21) of this law.
Article (31): Office staff.
- The office may not be employed by any other person unless the Board of Directors decides otherwise.
B- It must adopt provisions containing conflicts of interest.
Article (32): The employees, agents and correspondents of the office.
A– The co-presidency shall appoint and terminate the service of employees, agents and correspondents in the office within the limits of the general terms and conditions of employment approved by the Board of Directors and in accordance with them. B – No salary, fee, wage or other allowance paid by the office shall be calculated by calculating the net income, net profit or other income of the office.
Article (33): Conflict of Interest:
- a) The Department and the Inspector General must devote themselves fully and provide their professional services to the office, and they may not occupy any other position, whether with or without pay, other than being nominated by the office for the purposes of educational and civil efforts at times.
B – It is not permissible for any member of the Board of Directors or office staff to accept any gift or credit, whether directly or through any person with whom he has a family, commercial or financial relationship, if accepting such a gift would entail, or appears to result in, a decrease in his neutrality and loyalty to the office.
Article (34): Confidentiality:
A- No person who legally occupies or holds the position of a board member, employee, auditor, agent or correspondent of the office may allow, in an unauthorized manner under this law, access to, disclosure or non-public disclosure of material information Obtained while performing information duties or allowing it to be used for personal gain
B – With the exception of the preceding paragraph, the aforementioned persons may disclose non-public material information outside the office, in accordance with the procedures established by the office exclusively in the following cases:
1-Based on the express or implied consent of the person to whom the information relates.
2- In the course of performing a public duty of disclosure, including assistance in law enforcement, and upon order of a court or other person of the competent authority.
3-If such information is given to the auditors of the office.
4- If the international financial services involved in the performance of control units in financial institutions and employees of public institutions in the performance of their official duties.
5- If the interest of the office in the legal procedures requires disclosure.
The forth chapter
The relationship formula between the office and
the autonomous administration
(35) Bank and Financial Agent:
A- The office acts as a bank, advisor and financial agent for the Finance Authority and other bodies, provided that this does not entail that the office undertakes any transaction that would grant credit or be for the benefit of any public entity or any other physical or legal entity.
B – The office has the duty to provide advice to the Autonomous Administration on important financial and banking issues that are related to the objectives of the Central Cash and Payments Office or that fall within the areas of its jurisdiction.
C- Consultation of the office by the Finance Commission when preparing the budget for the Democratic Autonomous Administration.
D- The office may, and for the requirements of maintaining the stability of the financial system in northern and eastern Syria, provide credit to financial institutions facing financial difficulties.
Article (36): Depositary Center and Treasurer:
A- The office may accept funds in any currency from the Autonomous Administration, the Finance Authority, and others.
B – Within the amounts deposited against payment orders related to these accounts, the office pays interest on these deposits at rates determined by the Board of Directors, taking into account market conditions and the circumstances of the autonomous administration.
Article (37): Activities of the Financial Agent:
For the office and in accordance with the terms and conditions agreed upon with it for its own account and for the rest of the Autonomous Administration bodies and their agencies as determined by them.
Article (38): Information that must be submitted to the office:
To perform its functions and those of others, the office receives from the Finance Authority and other bodies all financial and economic information and documents required by the office to perform its functions and tasks.
Chapter Five
Relationships with Banks and Payment Systems Jobs
Article (39): Payments, Settlement and Settlements:
The office has the right to organize and supervise payments, organize payment orders, and for the purposes of clearing and settling payment transactions by banking and non-banking financial institutions in the currencies it determines, whether legal or not, including payments by checks and other payment tools, including electronic payment tools,in this regard, it may establish procedures and issue rules and decisions related to it as it deems appropriate.
Article (40): Bank accounts in the books of the office
A- Every bank or non-banking financial institution operating in northern and eastern Syria, and wishing to participate in the payment, clearing or settlement system, must open an account and keep it in the books of the office in accordance with the terms and conditions determined by the office, and submit immediately as required to the office Information related to its operations and financial position, as stipulated in the rules and procedures of the office.
B- The statutory reserve shall be deposited with the Bureau in accordance with the provisions of the regulations issued by the office.
Article (41): Information Network:
The office should establish and operate an information network for the financial system in northern and eastern Syria, and for this purpose
A department will be created with a mandate to analyze many things, macro-financial growth and policies permanent regulatory recommendations on currency management and related control activities, including an assessment of the impact of currency formation on inflation
Article (42): Banks Licensing, Education and Supervision:
A- The office will be exclusively responsible for licensing banks operating in northern and eastern Syria
It has the following powers:
1- Issuing rules, decisions, guidelines and taking other actions, including canceling banking licenses, and taking control of a troubled bank as the office deems necessary or preferable in order to implement its powers and responsibilities under this law and other laws.
2- Conducting an inspection by any of the office’s employees or by any other qualified person appointed for this purpose, of any bank and examining its books, records, documents and accounts for the purpose of ascertaining the status of its implementation of its business, and whether it is in accordance with this law, or any rule or decision or any other applicable law regarding banking licensing and supervision.
3- Requesting a manager, official or employee of any licensed bank or non-banking financial institution to provide the required information to the office for the purpose of enabling the office to supervise and regulate these financial institutions.
4- compelling any bank or any licensed non-bank financial institution to take corrective action or impose the penalties stipulated in this law or any other applicable rule, decision or law regarding the licensing and supervision of banks and financial institutions other than and banking.
B-The penalties for offences referred to in paragraph (4) of this article shall be imposed in violation of any institution, one or more of its employees or directors under the terms of:
Article (43): Precautionary rules and decisions
A- Every bank and non-banking financial institution must comply with the rules and decisions of the office with regard to the following:
their hours of operation, balance sheet accounts, off-balance sheet liabilities, income and expense statement items in relation to ratios between accounts, clauses, prohibitions, restrictions or conditions in relation to certain types or forms of credit or investments or credit or investments exceeding a certain amount or forms of Commitments with risk or matching of maturity of assets, liabilities, off balance sheet items, open foreign currency, swap, option or similar positions, or access to a system payments
B – Banks and financial institutions are subject to the same rules and decisions. Non-banking banks and financial institutions that carry out similar activities and enjoy similar financial status.
Article (44): Submission of information to the office.
A- Banks must provide the office with accurate and documented information related to their operations and financial status, as required by the office.
b- The office may publish this information and data, in whole or in part, in and non-banking financial institutions specified according to the nature of their business.
Chapter Six
Foreign Exchange Systems and Operations
45-Dealers of foreign currencies and banks:
A- Issuing rules and decisions governing foreign exchange transactions for individuals, non-financial institutions, financial institutions, agencies and agencies of the Autonomous Administration.
B- Control and regulation of foreign exchange dealers.
C- Place restrictions on the foreign exchange positions of foreign exchange dealers.
D- putting a method for determining the value of currencies relative to other currencies.
Article (46): Reporting of Foreign Exchange Transactions:
The office may require traders licensed to work in foreign currencies, including banks, to submit periodic reports to the office about their operations, including exchange positions.
On a business-by-business basis, the office should determine the reporting forms and supporting documents to be submitted.
Article (47): Dealing in foreign exchange:
The office may:
A- Buying, selling or dealing in gold coins, bullion or other precious metals.
B – Buying, selling or dealing in foreign currencies using the assets described in Article (48) of this law.
C- Determine the price at which you will buy, sell or deal in foreign currencies.
Article (48): Foreign Currency Assets:
The office maintains its balance sheet and manages assets denominated in foreign currencies consisting of any or all of the following: h
1- Gold
2- Foreign exchange on Banknote form with circulation within regions
Self-management or bank balances in the foreign banks
whose short-term liabilities are rated in one of the two highest categories by internationally recognized credit rating agencies.
3- Debt securities issued or guaranteed by countries or central banks that mature within (80) days and are denominated and payable in US dollars. B– The primary objectives in selecting foreign exchange assets must be capital safety and liquidity, and keeping these objectives in mind, these assets are selected to maximize profits.
Article (49): Clearing and Payment Agreements:
The office, whether for its own account or for the account of the Finance Authority, and by order of it, may enter into clearing and payment agreements or any other contracts for the same purpose with the central clearing public and private institution Existing country.
Chapter VII Operations Management
Article (50): Preserving the currency
The office shall, against the payment of a reasonable fee, provide facilities to financial institutions and customers in general, to keep banknotes and currencies which they specify.
Article (51): Labor Reserve Inventory:
The office shall manage the currency reserve stock in the currencies it deems appropriate for the settlement of local and international transactions to ensure a regular supply of currency to meet the requirements of the economy in the region and may charge a reasonable fee for this service.
Chapter Eight Financial Statements, Audit and Reports
Article (52): The fiscal year of the office
The financial year of the office begins on the first day of January and ends on the day The last of December.
Article (53): Accounting practices
A– The Office maintains accounts and records in accordance with international accounting standards to reflect its operations, provisions for bad and doubtful debts, and depreciation of assets, in collecting it.
B- The Office’s financial statements must include separate accounts of the General Reserve, provisions for bad debts, doubtful collections and depreciation of assets.
Article (54): Financial statements.
The office prepares financial statements for each of its financial years, and the balance sheet must include a trial balance, profit and loss statement (income) and related financial statements. required by international reporting standards
Article (55): The independent audit of accounts.
The accounts, records and financial statements of the Central Cash and Payments office shall be audited by internationally recognized independent auditors recommended by the Board of Directors of the Cash office and Central Payments are approved by the General Council and may separate auditors Independents of the Central Cash and Payments offfice for good reason.
Article (56): Referral and publication of data and reports:
A- The office shall, within four months of the closing of each financial year, submit to the Council year:
1- Financial statements certified by its external auditors.
2- A report on its operations and affairs during that year.
3- Report on the State of the Economy in Northeast Syria
Chapter Nine
Final Provisions
57- Consultations about proposed regulatory transfer offices.
the autonomous administration institutions shall make their opinion and implementation based on the outcome of the consultation regarding any proposal regarding the objectives of the office, or which fall within its areas of competence before issuing it.
Article (58): The right of priority for the office
A- The office has an unconditional priority right to satisfy all claims from any cash balances and other assets it maintains for its own account or for the account of the concerned debtor, whether as security for securing its claims or otherwise at the time when this claim becomes due and payable.
B- The office may exercise this right of priority only by holding cash balances and selling other assets, for a reasonable price and paying from the proceeds of the sale after deducting the costs associated with the sale, and no judicial action is required in order for the office to exercise this right of priority in accordance with the provisions of this article , not even claims of ownership or other previously acquired unless there is clear and convincing evidence that the firm’s personnel were knew or should be deemed to have known that at the time the assets became in The possession of the office was not owned by the debtor concerned.
Article (59): Activities Prohibited for the Office:
Except as specifically authorized by this law or any subsequent administrative regulations or instructions, the office may not:
a- Granting any credit, keeping any deposit, or presenting any cash or financial gift.
b- engage in trade or purchase shares of any company or corporation, including shares of any financial institution, or otherwise have an ownership interest in any financial, commercial or undertaking
c- Acquisition of any rights in immovable property by purchase, lease, or any other means, except as may be deemed necessary or appropriate to provide premises for the conduct of its administration and operations, or for the accommodation of its employees, or similar requirements relating to the performance of the its functions under the provisions of this law.
Article (60): Collecting statistical information
A- The office collects the statistical information required to achieve its objectives and carry out its tasks, and it may participate in technical cooperation to achieve this goal with specialized offices from outside the regions.
B- The office shall determine the required statistical information, the form in which this information shall be provided to the office, the persons who will provide this information to the office, and the confidentiality system that shall be applied to the statistical information submitted to the office.
C – The Central Monetary and Payments Office contributes to the collection, classification and distribution of statistics within its areas of competence in the practices governing.
Article (61): Exempting the office from taxes:
The office and its assets, property, income, operations and transactions shall be exempt from all taxes and duties on income, property, excise and capital gains.
Article 62: powers of regulations and inspection
a6A- The office shall be authorized to issue rules, decisions or guidelines for visiting the offices of banks organized by it, for the purposes of examining accounts, books, documents, and other records, and to take any other action that the office deems necessary or desirable to implement the provisions of this law.
B- All rules, decisions and principles issued by the office that apply to more than one institution shall be published and become effective on the date of this publication or at any subsequent date as determined by these directives or guidelines, and the Cash and Payments Office shall maintain a record of these rules, decisions and guidelines.
C – The rules and decisions of the office are final decisions regarding administrative procedures.
Article (63): Criteria for sound management:
A- The office uses the powers granted to it under the provisions of this law in a fair and unified manner and in accordance with sound administrative practices, and it must refrain from using any such power to serve a goal for which the power was not granted or exceed what is required to achieve the purpose for which it was granted.
- The office’s decisions taken in accordance with this law shall be impartial and subject to objective considerations and logical, and must be implemented fairly and conservatively.
Article (64): Trust accounts
The firm is authorized to open accounts, to keep them in its books, and to separate its assets and liabilities from the other assets and liabilities of the firm, the assets of each such account being solely to satisfy the liabilities of that account, and no other assets of the firm to be available to satisfy the liabilities of that account.
Article (65): Employment Policies:
The office shall apply non-discriminatory policies regarding staff recruitment and management to ensure that the composition of the office staff reflects the pluralistic nature of society in the North and East of Syria.
Article (66): Judicial review:
In any judicial or arbitral proceedings due to or in relation to the law against the office, official, employee or agent.
a- The only issue before the court or the arbitral tribunal is whether the defendant has acted illegally, or whether the defendant has acted in an arbitrary or improper manner in light of the facts, the law, the rules, the decisions, or relevant guidelines.
b- Any official, employee or agent of the office shall be liable for damages or for acts or omissions resulting from or during the performance of duties or responsibilities as long as these acts or omissions do not constitute intentionally wrongful conduct.
C- The case in question shall continue without restriction during the appeal period and any other appeal or any other judicial procedures related to the appeal.
Article (67): Transitional provisions:
A– During (30) days from the date of entry into force of the current law, no entity shall practice business to obtain a license unless it is authorized to carry out bank business from the office in accordance with this law
B – On the effective date of this law, any entity shall conduct bank payments transactions in the north and east of Syria. And central banking activities in northern and eastern Syria to stop engaging in activities that conflict with and overlap with the functions of the Central Cash and Payments Office.
C- With the exception of what is stated in Article (19) of this law, the compensation received must be disclosed in writing to the Autonomous Administration, or the waiver of this compensation by members of the Board of Directors in connection with their service in the office.
Article (68): Execution
The Autonomous Administration of North and East Syria, represented by the Executive Council and the Finance Authority, shall issue the executive instructions for this law within three months from the date of publication of this law.
Article (70): Relationship with previous laws:
The provisions of any previously issued law, decree, regulation, procedure or order shall be repealed if they are inconsistent with any provisions or texts of this law.
Article 71: entry into force
This law is effective as of 1/3/2022.
General Council: Saturday 4/12/2021
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