Page 26 - ISX Year Book 2023 EN

Iraq Stock Exchange’s Annual Report 2023

14. Monitoring brokerage companies’ compliance to the regulations of due diligence and
their amendments that aim at clients trading in securities, which were issued by the
Anti-Money Laundering and Countering Financing of Terrorism Office, and Iraqi
Securities Commission, which were issued in 2023.

On the other hand, disciplinary measures are taken against violations committed by joint-stock
and brokerage companies according to administrative procedures documented in detail.

After obtaining the approval of the Board of Governors, the ISX seeks to introduce specialized
smart supervisory systems in the course of the year 2024, to provide additional oversight
capacities to those of the trading, central depository, and anti-money laundering systems.

Twelfth: Iraqi Depository Center
The Iraq Depository Center (IDC) was established on the basis of the Section No. 9 of the
Interim Law on Securities Markets No. 74 for 2004, as a division of the ISX open to
participation by any member of the Exchange. The Center is administratively linked to the
ISX Board of Governors, and is supervised by the Chairman of the Board.

The IDC aims to:

1. Accepting registration and maintaining of the Register of Shareholders for the ISX-
listed companies at the Central Depository System (Equator), that is linked to the
Nasdaq Technologies' X-Stream electronic trading system.
2. Opening accounts for shareholders and investors at the Central Depository System,
after their data is subjected to scrutiny by the Anti-Money Laundering and Countering
Financing of Terrorism Office at the national and international levels.
3. Examining trading activities based on scenarios of the anti-money laundering system
(AML), and according to the information published on national and international
websites related to anti-money laundering.
4. Updating capital share increases and adding subscribed securities to the accounts of
eligible shares’ holders of the ISX-listed companies according to the decisions made by
their general assemblies.
5. Executing orders of family share ownership waiver.
6. Executing orders of inheritance ownership transfer.
7. Updating the Register of Shareholders at the Shareholders Corporate Management
System on the basis of trading activities, and providing companies and relevant parties
with necessary reports according to their needs.
8. Effecting pledge and lien orders issued by official bodies.
9. Working in cooperation with the Committee for Controlling Block Trades and Cross
Orders Transactions that are executed at the extended-hours session.

The Iraqi Depository Center publishes reports, statistical tables, and news of the ISX-listed
companies on its website: www.idc-stocks.com

The most important activities made by the IDC in 2023 can be summarized as follows:

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