Act Of 2006 Events Business Banking Institutions Are

Original Language Title: القانون 24 لعام 2006 إحداث مؤسسات تقوم بمزاولة أعمال الصرافة

Read the untranslated law here: http://parliament.gov.sy/arabic/index.php?node=201&nid=5035&RID=-1&Last=10058&First=0&CurrentPage=10&Vld=-1&Mode=&Service=-1&Loc1=&Key1=&SDate=&EDate=&Year=&Country=&Num=&Dep=-1&

Act of 2006 events business banking institutions are the President of the Republic based on the Constitution, approved by Parliament at its meeting dated 20-02-1427 h 20-03-2006 m, as follows: article 1 the following words and expressions mean in application of this law meanings: • Exchange: buy and sell foreign banknote (banknotes) and all means of payment in foreign currency converted in accordance with the provisions of this law and cutting systems window.

• Banking institutions: the banking company or licensee banking office by a decision of the monetary and credit Council to exercise banking in accordance with the provisions of this law.

• Convertible currency: any currency can be handled and converted into other currencies freely in global financial markets.

• Law of the Central Bank of Syria: the Central Bank of Syria and the basic monetary system 23 2002.

Article 2A. monetary and credit Council is entitled to authorize institutions of events you exchange business in accordance with the provisions of this law, law number 23 of 2002 that activity is limited to banking. B-the banking institutions are divided into two types: 1. Exchange companies that are licensed to form stock companies fool Syria.

2. the bureaux that are licensed in the form of joint companies between individuals of Syrian nationality and their equivalents. C-the Syrian citizens and public and private banks contribute to establishing anonymous contribution to banking companies. Exchanges may also Arabic and special expertise global contribution to the establishment of these companies. D-required when one contribution public banks in Exchange Company obtain prior approval from the Cabinet. In this case the public sector contribution should not exceed 25 percent of the banking capital of the company. E-Exchange companies contribution required when Arabic world and founded anonymously contribution banking companies to get prior approval from the Cabinet. As well as the total contribution of these companies in any of the licensed dealers 25 percent of its capital. And-non-licensed banking institutions are forbidden to use the term ATM or Exchange client or any similar expression or changer in any language, whether in their own name or in the name or address or set the type of business or in its propaganda.

Article 3 is established banking institutions provided for in article 2 of this law in accordance with the following conditions:-they must be all enterprise banking stocks in the form of joint stock companies fool nominal shares. B-institutional banking institutions are required to be of good repute and not someone bye condemned crime against decency or integrity listed in article 102 of law number 23 of 2002. C-is subject to prior approval of the Central Bank of Syria all waiver shares or stakes in any company or foreign exchange office. D-no fold one canister partner exchange offices to apply for a license in conjunction with others only after proof of withdrawing completely from the joint company. Nor shall any of the major shareholders in stock companies involved in founding another company to engage in banking. E-waiver banking institution company license to others void unless approved by the monetary and credit Council. In this case a new license and is subject to all terms and conditions of the licensing procedures prescribed in this law.

Article 4-sets in the instrument for the establishment of a company or Exchange Office cash capital which shall not be less than two hundred and fifty million 250 SP for changing companies and about 50 fifty million SP for bureaux. The Central Bank of Syria can modify the minimum capital that anytime by decree upon proposal of the monetary and credit Council. The banking institutions give out years to settle. B-Exchange Company is entitled to contribute to have three branches in addition to its headquarters without an increase in its capital. And have to open other branches with the prior approval of the Central Bank of Syria. In this case it increased its capital by $50 fifty million Syrian pounds to capital for each additional section. In remote areas identified by the monetary and credit Council, determines the minimum increase in company capital on branch. And also the capital of the banking office in those areas ls 25 million monetary and credit Council also determines how to treat Exchange machines belonging to these companies. C-full paid capital and any subsequent increase in cash on him at once with the Central Bank of Syria. As the banking institutions that have suffered losses that within a maximum of six months, either to rebuild their capital, or to reduce it, provided that at least the minimum due under the provisions of this law. D-banking institutions to permanently retain cash reserves equal to 25 percent of its capital and reserves and deposit it in a bank acceptable by and in the name of the Central Bank of Syria. Use the reserve for checks and instructions issued by the Central Bank of Syria. This reserve returns back to the banking institution deposit. E-currency and credit Council is entitled to modify the indicated cash reserve ratio. He may also decide to replace the cash reserve can partially or entirely by a bank guarantee for any types of banking institutions, or both. The Board determines the amount of bail and conditions. And-it is not permissible for the capital or borrowing from partners to exceed their draws annual net profit after payment of annual tax liability and compulsory reserve deduction. G-banking organizations should enjoy the experience and practical knowledge in banking and risks and assess the adequacy of returns to the Central Bank of Syria.

Article 5a. monetary and credit Council issued a decision specifying the principles and actions that should be taken into account, and documents to be submitted when submitting license applications and registration for both types of banking institutions and their branches. B-student license request side progressing to the Central Bank of Syria annexed memorandum in the case of companies consolidated, and basic corporate system in the event that the company is a joint stock company. Where he studied in the light of the provisions of this law and the laws and regulations in force and the extent of the needs of the national economy and the efficiency of the founders and managers manage the student license and transmitting Central Bank memorandum and articles of Association to the Ministry of economy and commerce to authenticate them.


C-If the license request and authenticate the Ministry of economy and trade on the memorandum and articles of Association, the monetary and credit Council license decision within three months from the date of registration with the Central Bank of Syria. D-the founding fathers after the decision of the licensing update Exchange Foundation month procedures with the Secretariat of the commercial register in the Ministry of economy and trade. -The Central Bank of Syria then deployed license decision in the official journal at the request of the licensor company registration office or in the register of companies and bureaux in the Government Banking Commission is not entitled to the company or to the Office direct action by this recording. And the Central Bank of Syria right outsourcing consulting firm to study permit applications. And bear the costs of these license student study. G-eliminates licensed or license for the licensed Office if function/work during the six months after getting a license. H-any company may be registered to practise Exchange including conversion or transfer money to any competent official only after obtaining the approval of the Central Bank of Syria. I-all banking institutions must submit to the Central Bank of Syria during the month of January of each year a request to renew the registration and payment of the annual registration by the monetary and credit Council.

Article 6.-the main centre for exchanges in a provincial centers chosen by the student licence and shall at the request of the Board of directors or of the founders and the approval of the Central Bank of Syria events branches within the Syrian Arabic Republic counties and cities. B-license for effecting bureaux in provincial centres or the Syrian cities chosen by the student licence and no right to open branches. C-required for a license to any company or foreign exchange Office provide convenient store business approved by the Central Bank of Syria. And considerations needed economic activity and tourism as well as considerations of security and comfort for employees to choose the right place. And may not move headquarters or branch only after prior approval from the Central Bank of Syria.

Article 7a – prohibiting anyone was doing or practicing banking only upon prior authorization issued by the monetary and credit Council in accordance with the provisions of this law. B-the banking institutions are prohibited from exercising any work other than banking licensed to practice. C-the banks and money-changing companies licensed contribution in accordance with the provisions of this law exclusive brokers in everything related to the transfer and transfer funds between the Syrian Arabic Republic and abroad. D-Exchange companies and banks is committed to comply with the provisions of the instructions issued by the Central Bank of Syria regarding the regulation of transfers of funds between the Syrian Arabic Republic and abroad.

Article 8 licensed banking institutions wielded pranayama in Syrian Arabic Republic Exchange following operations according to real exchange rates and cutting systems window: a purchase of foreign banknotes (bank note) all means of payment in convertible foreign currency and cheques and travellers cheques and pay in Syrian pounds or foreign banknotes (bank note). B-sale of foreign banknotes (bank note) and cheques in accordance with the regulations. C-check and tally deposit cheques and any means of payment in foreign currency convertible in open accounts at local licensed banks authorized to deal in foreign exchange.

Article 9 1 Exchange companies are entitled to contribute to the fool, not offices, in addition to what is stated in article 8 the following business:-sale of foreign currency deposited in open accounts with licensed banks cutting regulations in force. They may also use these accounts to cover foreign banknotes had values. B receive and implement incoming remittances from abroad either foreign currency or Syrian pounds. C-with the assistance of the banking system in the transfer of funds at the request of individuals within the territory of the Syrian Arabic Republic. Especially to areas where there are no bank branches. D-export surplus banknote (banknotes) abroad after the Organization of the Central Bank of Syria has pledged to return under transfers or checks from overseas in foreign currencies and deposit in their accounts at local licensed banks authorized to deal in foreign exchange during the period from the date of export monetary and credit Council. E-transfers of foreign exchange abroad for cutting systems allow targets window.

2. bureaux may not exercise any of the actions described in this article.

Article 10 exchange operators may not, with the prior approval of the Central Bank of Syria, open accounts in banks outside the Syrian Arabic Republic. Must not exceed the sum of the account balances of any exchange companies at any time on 30% of its capital.

Article 11 Exchange institutions trading takes place in all the processes of buying and selling foreign exchange rate determined by the institution within the limits established by the monetary and credit Council.

Article 12-Exchange institutions is prohibited under penalty of cancellation of license to run any of the non-banking operations provided for in this law and in particular the following operations: 1. opening or maintaining current accounts or deposits for dealers in Syrian pounds or foreign currencies.

2. accept deposits or deposit or the granting of loans or securities business in Syrian pounds or in foreign currency.

3. deal with forward exchange markets.

4. Open documentary credits or communicated.

5. issue of guarantees or undertakings in Syrian pounds or foreign currencies.

6. keep any accounts or balances in foreign currency or Syrian pounds in Syrian Arabic Republic outside without prior approval by the Central Bank of Syria and within limits.

7. deal in global commodity markets, precious metals and foreign securities. Or any amounts invested in foreign currency or Syrian Arabic Republic outside the Syrian lira, directly or indirectly, either to account or for the account of others.


8. get any credit from abroad, whether directly or indirectly. It is not permissible for companies and bureaux to get bank loans from Syrian banks or from abroad for work or for speculation.

9. to lend or borrow or administers or participates in issuing loans. Or mortgaging any assets before obtaining prior approval from the Central Bank of Syria on any of these operations.

10. issuing any form of payment or credit cards. B-monetary and credit Council adds to the above cases other cases as required by the public interest.

Article 13 any of the banking institutions institution in accordance with the provisions of this law stop partially or entirely on work for any period of time before obtaining prior approval from the Central Bank of Syria.

Article 14 sets out the Central Bank of Syria established estimating asset items constituting the corresponding banking institution capital each institution is committed to proving that the assets already exceed demands due to others in the amount equal to at least the value of their capital.

Article 15, taking into account the provisions of article 5 of this law, subject to the prior consent of the monetary and credit Council each amendment to be made to the Statute of the Exchange companies or memorandum of exchange offices.

Article 16 banking institutions control is entrusted to the Central Bank of Syria. Banking institutions should comply with regulatory measures taken by the Bank and the procedures imposed by the protection of clients and customers in particular: a to give it the conditions and in accordance with the forms and within the deadlines, accounting and statistical information and data and documentation for legal and physical conditions due to its functioning and requested. B-to hold a special record record daily operations that exceed a certain amount is determined by the Central Bank of Syria to provide the date of each operation and serial number and the name of the client that is the process in his favor after checking his identity and address. C-to regular accounting records are maintained in accordance with the provisions of the Trade Act and its amendments and the requirements of the Central Bank of Syria in this respect and in accordance with the international accounting rules, assets recording operations and should provide the Central Bank of Syria within a period not exceeding three months from the date of the end of the financial year with a certified copy of its annual budget and final accounts according to the models. The Central Bank of Syria is entitled to request any information or periodic data deem necessary to verify the safety of operations and compliance with the provisions of this law and its instructions. As the Central Bank of Syria is entitled to conduct inspections he deems appropriate on their records by his staff or such of Auditors and banking institutions to provide those records and other documents or data. D-records to be maintained by it for daily operations mainly for process auditing by auditors or auditor. -Be equipped with equipment for detecting counterfeit currency in all places of work. And the banking institutions should deal with her name or official title registered with the authorities concerned by the use of the name or address in all trade publications including receipts and documents and correspondence. G-banking institutions to advertise prominently places operate plate holds prices for buying and selling foreign currencies. And to provide all clients with receipts or official notices bearing the seal of the company or Office. H-banking institutions do necessary and sufficient insurance for their offices and assets.

Article 17 right to changing companies licensed in accordance with the provisions of this Bill transfer net profit, capital stock owners or their shares of Arabic and foreign exchange companies or Syrians expatriates who were paying their contributions to the company's capital in foreign currencies outside the Syrian Arabic Republic after getting clearance from the financial community and the approval of the Central Bank of Syria.

Article 18 if the Central Bank of Syria found that one of the banking institutions violated provisions of its statute or memorandum or trade law provisions or the provisions of this law or recommendations or measures imposed by the Central Bank of Syria or if the work is detrimental to the reputation of Syria or financial or any other acts determined by the monetary and credit Council. The Council following administrative punishment right: e-alert. B-banned from performing certain transactions or impose any limitation or restriction most in practise. C-block, Chairman of the company or the Commissioner or any member of the partners of the practice permanently or for a specified time. D-removed from the register of banking.

Article 19-management of banking institutions to ensure that all its operations are in accordance with the origins and provisions of professional secrecy. B banking institutions may exchange among themselves and between the Central Bank of Syria information on their customers.

Article 20 shall inspect or seize banking institutions or book any of its assets only with the written request by the Central Bank of Syria or at the request of the competent court or prosecution.

Article 21 the banking institutions avoid actions or operations or to mislead dealers in the market to influence Exchange rates and to avoid misuse of the information accessed by virtue of her work.

Article 22 a-banking institutions must comply with the provisions of the AML/CFT law and its amendments and regulations. B-banks and banking institutions to ensure that the amounts that equal or exceed the amount of five hundred thousand pounds or the equivalent in foreign currencies and sold or purchased or transferred to or from the banking institutions accompanied by the necessary supporting documents showing the nature of the subject of purchase or sale or transfer and the identity of the parties and that these documents are maintained properly.

Article 23 banking institutions each appoint a legal auditor with good professional reputation, choose from the list of legal Auditors approved by the Central Bank of Syria and keep proper accounting records and those records to the Central Bank of Syria as specified.

Article 24 a-exempt notifications and receipts on exchange transactions and operations of drawing nature.


B-cost companies and bureaux de change in income tax on real earnings and a single rate of 25% of net profits.

Article 25 amended by Act 29 of 2012-violates the provisions of paragraph (a) of article 7 of this law and practising Exchange without a license is punishable by imprisonment from six months to one year and a fine of one million pounds. B-contravenes the provisions of paragraph (b) or (d) of article 7 of this law shall be liable to a fine of LS 100 000 to 500 000 ls. (C) contravenes the provisions of paragraph (c) of article 7 of this law to move or transfer money between Syria and abroad without prior authorization is punishable by imprisonment from six months to a year and confiscation of movable and fine like movable or transferred. D-any other violation of the provisions of this law are punishable by imprisonment of three to six months in prison and a fine of one hundred thousand to five hundred thousand pounds, or both. E – attempted bye of the penalty for the offender. And doubled the penalties set out in the preceding paragraphs in case of repetition. -Do not turn the penalties outlined above without the prosecution and punishment of offenders as if the offense an offence falls under the law against money laundering and terrorist financing. G-not claim a public right in connection with the infringement set out in this article only at the request of the Management Committee of the Central Bank of Syria.

Article 26 right to monetary and credit Council decision to suspend banking institutions or reduce its activity temporarily if that emergency cash or economic circumstances or exceptional.

Article 27 banking institutions are subject to the provisions of the Trade Act No 149 of 1949, as amended in everything that does not conflict with the provisions of this law.

Article 28 instructions necessary for the implementation of this law, the decision of the monetary and credit Council.

Article 29 of this law shall be published in the Official Gazette.

Damascus in 20-02-1427 Hijri, 20-03-2006 a.d.



President Bashar Al-Assad