Annex A
COALITION PROVISIONAL AUTHORITY MEMORANDUM
NUMBER 17
Registration requirements for Private
Security Companies (PSC)
Pursuant to my authority as Administrator
of the Coalition Provisional Authority (CPA), and under the laws
and usages of war, and consistent with relevant U.N. Security
Council resolutions, including Resolutions 1483, 1511 (2003) and
1546 (2004),
Recognizing that all Private Security
Companies (PSC) need to be registered with the Ministry of Trade
and regulated by the Ministry of Interior, and that various CPA
orders and memoranda, and Iraqi law provide guidance for PSC operations
(see Annex C),
Noting that a number of PSC and their
employees are already operating in Iraq without the benefit of
appropriate registration and authorization of the Ministry of
Interior and Trade,
Desiring to establish a mechanism whereby
all PSC will be registered, regulated and vetted and to update
Iraqi law as it relates to PSC,
I hereby promulgate the following:
Section 1
PURPOSE AND
DEFINITIONS
1. This Memorandum provides guidance for
PSC that intend to operate within Iraq. Annex A provides binding
Rules for the Use of Force that must be adhered to by all PSC,
their officers and employees. Annex B is a Code of Conduct that
all PSC must follow.
(a) "Private Security Company"
means a private business, properly registered with the Ministry
of Interior (MOI) and Ministry of Trade (MOT) that seeks to gain
commercial benefits and financial profit by providing security
services to individuals, businesses and organizations, governmental
or otherwise.
(b) "Weapons Card" means a card
issued by the MOI under Section 6 of this Memorandum.
(c) "Business License" means a
document issued by the MOT under Company Law No. 21 of 1997, as
amended by CPA Order 64 that proves that the PSC has been validly
registered to carry on business in Iraq.
(d) "Operating License" means a
license issued by the MOI under this Memorandum, which permits
PSC to operate in Iraq.
Section 2
REGISTRATION, VETTING
AND LICENSING
1. PSC may not operate in Iraq without a:
(a) Business License and an Operating License,
or
(b) Temporary Operating License.
Any PSC operating without the necessary Licenses
will be in breach of Iraqi law and subject to prosecution.
2. In order to obtain a Business License
PSC shall apply to the MOT for registration under the Company
Law, No. 21 of 1997, as amended by CPA Order 64.
3. PSC that have been granted or applied
for a Business License may apply to the PSC Registration and Vetting
Office of the Ministry of Interior for an Operating License.
4. An application for an Operating License
must include the following information:
(a) a copy of the PSC Business License or
proof that an application for a Business License has been lodged;
(b) the full names of all employees, company
officers and directors, and proof of registration of the company,
and if the PSC is registered in a State other than Iraq proof
of registration of the company in its home State;
(c) details of the work PSC will be carrying
out in Iraq, including any relevant documentation (eg a copy of
any contracts for services or statement of intent to hire the
PSC, including details of number of employees and customers);
and
(d) details and serial numbers of all weapons
that may be used by the PSC.
5. PSC, their officers and employees will
be vetted by the MOI according to the criteria below to ensure
that any criminal or hostile elements are identified and to prevent
attempts by illegal organizations (eg criminal organizations,
illegal militias) to legitimize their activities.
6. In order to comply with MOI vetting standards,
employees of PSC must:
(a) Be older than 20 years;
(b) Be mentally and physically fit for duties;
(c) Be willing to respect the law and all
human rights and freedoms of all citizens of the country;
(d) Pass a security/background check, that
confirms:
(i) compliance with the amended CPA Order
Number 1 (De-Ba`athification of Iraqi Society);
(ii) no prior felony convictions; and
(iii) no history of involvement in terrorist
activity; and
(e) Receive operations and weapons training
to the minimum standard set for the Facilities Protection Service.
7. For non-Iraqi employees, the MOI may
accept a copy of a comparable certification from a foreign Governmental
authority issued pursuant to its official rules and procedures
to meet some or all of the requirements in Section 2(6), above.
8. Other reasonable vetting procedures and
requirements may be added by the MOI to ensure necessary standards
are met. In such case, new procedures and requirements shall be
published no less than 60 days before they are to take effect.
Section 3
BONDS AND
INSURANCE
1. PSC must submit a minimum refundable
bond of US$25,000 or the equivalent sum in Iraqi Dinars, to the
MOI before commencing operations in Iraq and being granted an
Operating License or Temporary Operating License. Additional bonds,
to be determined by the MOI, may be required depending on the
number of employees of the PSC. The amount of the bond will increase
as the number of employees increases, in accordance with an internationally
recognized pro-rata industry-wide scale to be determined by the
MOI. This scale shall be published 30 days before any additional
bond requirement are to take effect. Any changes in bonding requirements
will be approved by the Minister of Interior, and published in
writing no less than 60 days before institution.
2. Failure to provide information to the
MOI as required by Section 7 may result in forfeiture of the bond
lodged in accordance with Section 3(1) or part thereof. MOI shall
provide the PSC with written notice of any breaches and allow
a one week grace period to come into compliance before any forfeiture
of the bond or part thereof takes effect.
3. While the standards laid out in this
Memorandum provide the minimum requirements, any breaches of Iraq
or other applicable law by employees or companies may result in
forfeiture of the bond by the MOI lodged in accordance with Section
3(1) or part thereof and may result in a review and revocation
of the Operating License of the PSC. Where a PSC, or an employee
of that PSC, breaches this Memorandum or any other law in force
in Iraq, the MOI may declare the bond or any part thereof forfeit.
Any such decision to declare the bond forfeit must be based on
reasonable grounds and be proportional to the breach of the law
initiating such action. The MOI will take into account actions
taken by the PSC with respect to individual violations (eg termination,
prompt and open coordination with law enforcement) in determining
whether a PSC should forfeit its bond or any part thereof.
4. PSC must submit evidence that they have
sufficient public liability insurance to cover possible claims
against them for a reasonable amount to be advised and published
by the MOI. If securing such insurance is not practicable the
PSC will inform the MOI in writing and seek an exemption from
this requirement.
5. Bonds will be refunded within 30 days
if PSC ceases operation in Iraq unless there are reasonable grounds
to believe that PSC have failed to comply with this Memorandum.
Section 4
REFUSAL, SUSPENSION
OR REVOCATION
OF LICENSES,
AND PROVISIONAL
LICENSES
1. The MOI will grant Temporary Operating
Licenses pending completion of the licensing processes of the
MOT and MOI. The minimum requirements for the grant of a Temporary
license are:
(a) Submission to MOI of proof that an application
for a Business License has been lodged with the MOT; and
(b) Submission to the MOI of an application
for an Operating License, including any other requirements that
the MOI may notify.
2. Operating Licenses may be suspended,
revoked or refused in accordance with the following provisions:
(a) The MOI may, at their sole reasonable
discretion, refuse to grant an Operating License if the conditions
of this Memorandum are not met. The reason for the decision shall
be communicated to the applicant in writing. The applicant may
reapply for an Operating License after taking remedial action
with respect to the breaches identified by the MOI.
(b) Where a PSC, or an employee of that PSC,
breaches this Memorandum or any other law in force in Iraq, the
MOI may suspend or revoke the Operating License. Any such decision
to revoke or suspend an operating license must be based on reasonable
grounds and be proportional to the breach of the law initiating
such action. If the Operating License is revoked, the bond, or
part thereof, lodged in accordance with Section 3(1) will be forfeited.
The MOI will take into account actions taken by the PSC with respect
to individual violations (eg termination, prompt and open coordination
with law enforcement) in determining whether a PSC should forfeit
its license as the result of such violations.
(c) Where a PSC application for an Operating
License is deficient in any way, the MOI may grant a Provisional
Operating License for a specified period of time. The grant of
an Operating License will be subject to the applicant demonstrating
that they have remedied the deficiency (eg, providing complete
information to allow background checks on all employees, or giving
appropriate training to all employees).
3. Any Provisional or Temporary Operating
License will be cancelled if:
(a) either of the applications for the Business
and Operating License is denied or withdrawn; or
(b) on the grant by the MOI of a full Operating
License.
4. Unless it has been affirmatively denied
a Business License or Operating License, notwithstanding the provisions
of this Memorandum, PSC may operate without a Business License,
Operating License or Temporary Operating License until 31 August
2004 or such later date as determined by MOI, pending completion
of the requirements of this Memorandum.
Section 5
AUDIT
PSC are liable to periodic audits by the MOI
regarding their operations in Iraq. All audits will be carried
out by an independent auditing firm engaged for this purpose by
MOI. The purpose of MOI audits is to ensure that the standards
set out in Section 2(6) above are being maintained. Financial
audits may also be carried out by MOT.
Section 6
WEAPONS
1. Where an Operating License is granted,
or the Minister of Interior accepts the certification or guarantee
of a Diplomatic or Consular Mission under Section 10(5), the MOI
shall issue Weapons Cards to those PSC employees who will bear
arms as part of their duties. Such Weapons Card shall constitute
a license to possess and use firearms. PSC must instruct employees
to carry their Weapons Cards whenever carrying a weapon. All PSC
employees must carry the relevant Weapons Cards when in possession
of any PSC weapon. If a PSC's Temporary, Provisional or full Operating
License, certification, or guarantee is revoked, all Weapons Cards
issued to the employee of that PSC shall be returned to the MOI.
2. Where a Temporary License is granted,
the MOI shall also issue Temporary Weapons Cards to those PSC
employees who will bear arms as part of their duties. Such Temporary
Weapons Cards shall constitute a license to possess and use firearms.
PSC must instruct employees to carry their Temporary Weapons Cards
whenever carrying a weapon. All PSC employees must carry the relevant
Temporary Weapons Cards when in possession of any PSC weapon.
3. A PSC intending to import weapons into
Iraq must obtain from the MOI a weapons import certificate. The
PSC must provide details of all weapons and their serial numbers
to MOI immediately upon importation.
4. The use of weapons by PSC shall be regulated
as follows:
(a) PSC shall notify the MOI of details and
serial numbers of all weapons in its possession.
(b) PSC will notify the MOI of any changes
in the PSC's weapons inventory within one (1) month of such changes.
(c) PSC shall store all weapons and ammunition
in a secure armory or other secure facility.
(d) PSC shall ensure that only employees
carrying Weapons Cards may carry weapons and only when such employees
are on official duty. PSC shall also ensure that its employees
return all PSC weapons to the armory or other secure facility,
as the case may be, when no longer on duty. This provision does
not restrict the right of PSC employees to carry weapons while
not on duty under the provisions of other Iraqi laws.
(e) PSC may only own and its employees may
only use categories of weapons allowed by CPA Order Number 3 (Revised)
(Amended) Weapons Control, other applicable Iraqi law.
(f) Under no circumstance may privately owned
weapons be used for PSC duties.
Section 7
PROVISION OF
FURTHER INFORMATION
On request, PSC must provide the following information
to the MOI every six (6) months: financial and employment records,
contract status, weapons data, and any other data the MOI may
advise they require. Failure to comply may result in revocation
of the PSC Operating License. MOI shall provide the PSC with a
written notice of any failure to comply with this provision and
a one week grace period to comply before any revocation of an
Operating License.
Section 8
OVERSIGHT COMMITTEE
MOI will establish an independent PSC Oversight
Committee that will have general inspection and auditing responsibility
(consistent with the provisions of CPA Order 57, Iraqi Inspectors
General) over the implementation of this Memorandum. Such oversight
shall include assessing enforcement of the standards set forth
in this Memorandum as well as equitable and non-discriminatory
treatment of PSC. The Minister will appoint the members of the
Committee, which shall include the Inspector General of MOI, who
shall be the only MOI representative on the committee, a member
of the Judiciary and a representative of the MOT. The PSC Oversight
Committee will report annually to the Minister on the implementation
of this Memorandum.
Section 9
LIMITATIONS AND
RESPONSIBILITIES OF
PRIVATE SECURITY
COMPANIES
1. The primary role of PSC is deterrence.
No PSC or PSC employee may conduct any law enforcement functions.
2. A licensed PSC shall be responsible for
the actions of its employees. PSC officers and employees may be
held liable under applicable criminal and civil legal codes, including
the Iraqi Penal Code Law Number 111 of 1969 as amended, the Iraqi
Weapons Code of 1992 as amended, and the CPA Order Number 3 Weapons
Control, except as otherwise provided by law.
3. PSC are subject to, and must comply with
all applicable criminal, administrative, commercial and civil
laws and regulations, except as otherwise provided by law.
4. PSC must conduct operations in accordance
with the provisions of the Rules for the Use of Force in Annex
A and the MOI PSC Code of Conduct in Annex B.
Section 10
IMPLEMENTATION AND
REVIEW
1. Nothing in this Memorandum is intended
to prevent PSC from conducting operations consistent with and
as permitted by the Iraqi Law, including those laws in Annex C.
2. Nothing in this Memorandum is intended
to limit or abridge relevant privileges or immunities provided
by Iraqi law or applicable international agreements.
Section 12
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