07-F-1059 doc4

COALITION PROVISIONAL AUTHORITY MEMORANDUM NUMBER 17 REGISTRATION REQUIREMENTS FOR PRIVATE SECURITY COMPANIES (PSC) Pursuant to my authority as Administrator of the Coalition Provisional Authmity (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 Secmity Companies (PSC) need to be registered with the Ministty of Trade and regulated by the Ministty of Interior, and that vruious 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 registt·ation and authmization 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. Aru1ex 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 (MOl) and Ministry of Trade (MOT) that seeks to gain commercial benefits and financial profit by providing secuTity services to individuals, businesses and organizations, governmental or otherwise. b) "Weapons Card" means a card issued by the MOl 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 cru1y on business in Iraq. d) "Operating License" means a license issued by the MOl under this Memorandum, which permits PSC to operate in Iraq. CPA!MEMJ26 June 2004/17 Section 2 Registration, Vetting and Licensing 1) PSC may not operate in Iraq without a: a) Business License and an Operating License, or b) Temporaty 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 RegistTation and Vetting Office of the Ministly of Intetior 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 regisu·ation of the company in its home State; c) details of the work PSC will be carrying out in Iraq, including any relevant documentation (e.g. a copy of any conu·acts 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 MOl according to the criteria below to ensure that any criminal or hostile elements are identified and to prevent attempts by illegal organizations (e.g. ctiminal organizations, illegal militias) to legitimize their activities. 6) In order to comply with MOl 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 tights and freedoms of all citizens of the countly; d) Pass a security/background check, that confitms: CPA/MEMJ26 June 2004/17 2 1. compliance with the amended CPA Order Number 1 (De-Ba'athification of 11. 111. Iraqi Society); no prior felony convictions; and no histmy of involvement in ten-orist activity; and e) Receive operations and weapons training to the minimum standard set for the Facilities Protection Service. 7) For non-Iraqi employees, the MOl 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 MOl to ensure necessaty standards are met. In such case, new procedures and requiTements 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 MOl before commencing operations in Iraq and being granted an Operating License or Temporaty Operating License. Additional bonds, to be detennined by the MOl, 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 intemationally recognized pro-rata indust:ty-wide scale to be determined by the MOL 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 infmmation to the MOl as required by Section 7 may result in fmfeiture of the bond lodged in accordance with Section 3(1) or part thereof. MOl 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 mm. unum requiTements, any breaches of Iraq or other applicable law by employees or companies may result in fmfeiture of the bond by the MOl lodged in accordance with Section 3(1) or patt 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 Memorat1dum or any other law in force in Iraq, the MOI may declare CPA/MEMJ26 June 2004/17 3 the bond or any part thereof fmfeit. Any such decision to declare the bond fmfeit must be based on reasonable grounds and be proportional to the breach of the law initiating such action. The MOl will take into account actions taken by the PSC with respect to individual violations (e.g. termination, prompt and open coordination with law enforcement) in detennining whether a PSC should forfeit its bond or any patt thereof. 4) PSC must submit evidence that they have sufficient public liability insmance to cover possible claims against them for a reasonable amount to be advised and published by the MOl. If seeming such insurance is not practicable the PSC will infmm the MOl in wtiting 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 Temponuy Operating Licenses pending completion of the licensing processes of the MOT and MOL The minimum requirements for the grant of a Temporary license are: a) Submission to MOl of proof that an application for a Business License has been lodged with the MOT; and b) Submission to the MOl of an application for an Operating License, including any other requirements that the MOl may notify. 2) Operating Licenses may be suspended, revoked or refused in accordance with the following provisions: a) The MOl 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 sha11 be communicated to the applicant in writing. The applicant may reapply for an Operating License after taking remedi.al action with respect to the breaches identified by the MOl. b) Where a PSC, or an employee of that PSC, breaches this Memorandum or any other law in force in Iraq, the MOl 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 propmtional 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 MOT will take into accow1t actions taken by the PSC with respect to individual violations CPA/MEMJ26 June 2004/17 4 (e.g. tetmination, prompt and open coordination with law enforcement) in detetmining whether a PSC should f01feit 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 (e.g., providing complete inf01mation to allow background checks on all employees, or giving approptiate training to all employees). 3) Any Provisional or Temporruy 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 MOl of a full Operating License. 4) Unless it has been affitmatively denied a Business License or Operating License, notwithstanding the provisions of this Memorandum, PSC may operate without a Business License, Operating License or Temporru·y Operating License until 31 August 2004 or such later date as detennined by MOI, pending completion of the requirements of this Memorandum. Section 5 Audit PSC are liable to periodic audits by the MOl regru·ding their operations in Iraq. All audits will be catTied out by an independent auditing firm engaged for this pmpose by MOl. The purpose of MOl audits is to ensme that the standru·ds set out in Section 2(6) above are being maintained. Financial audits may also be catTied 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 beru· rums as prut of their duties. Such Weapons Cru·d shall constitute a license to possess and use firerums. PSC must instruct employees to cru1y their Weapons Cards whenever canying a weapon. All PSC employees must cany the relevant Weapons Cru·ds when in possession of any PSC weapon. If a PSC's Temporaty, Provisional or full Operating License, cettification, or guru·antee is revoked, all Weapons Cards issued to the employee of that PSC shall be retumed to the MOL CPA/MEMJ26 June 2004/17 5 2) Where a Temporruy License is granted, the MOl shall also issue Temporruy Weapons Cru·ds to those PSC employees who will bear ru·ms as prui of their duties. Such Temporruy Weapons Cards shall constitute a license to possess and use fll"erums. PSC must instruct employees to cany their Temporruy Weapons Cru·ds whenever cru1ying a weapon. All PSC employees must cru1y the relevant Temporruy Weapons Cru·ds when in possession of any PSC weapon. 3) A PSC intending to impmi weapons into Iraq must obtain from the MOT a weapons impmi certificate. The PSC must provide details of all weapons and their serial numbers to MOl immediately upon importation. 4) The use of weapons by PSC shall be regulated as follows: a) PSC shall notify tl1e MOT of details and serial numbers of all weapons in its possession. b) PSC will notify fue MOT of any changes in the PSC's weapons inventmy within one (1) monfu of such changes. c) PSC shall store all weapons and ammunition in a secure atmory or other secure facility. d) PSC shall ensure that only employees cru1ying Weapons Cards may cany weapons and only when such employees ru·e on official duty. PSC shall also ensure that its employees retum all PSC weapons to the rummy or other secw·e facility, as fue case may be, when no longer on duty. This provision does not restrict the right of PSC employees to cany weapons while not on duty under fue 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 infmmation to the MOl evety six ( 6) months: financial and employment records, contract status, weapons data, and any other data the MOl may advise they require. Failure to comply may result in revocation of the PSC Operating License. MOl shall provide the PSC with a written notice of any failure to comply with this provision and a one week grace pe1iod to comply before any revocation of an Operating License. CPA/MEMJ26 June 2004/17 6 Section 8 Oversight Committee MOl 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-discriminatmy treatment of PSC. The Minister will appoint the members of the Committee, which shall include the Inspector General of MOl, who shall be the only MOl representative on the committee, a member of the Judicimy and a representative of the MOT. The PSC Oversight Committee will repmt annually to the Minister on the implementation of this Memorandum. Section 9 Limitations and Responsibilities of Private Security Companies 1) The ptimary role of PSC is detenence. 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 m·e 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 MOl 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 petmitted by the Iraqi Law, including those laws in Annex C. 2) Nothing in this Memorandum is intended to limit or abtidge relevant ptivileges or immunities provided by Iraqi law or applicable intemational agreements. CPA/MEMJ26 June 2004/17 7 3) The MOl may issue administrative directions in connection with the implementation of this Memorandum and amend the Annexes to this Memorandum. 4) A person who is adversely affected by a decision of the MOl made pursll3l1t to this Order may apply in writing to the Minister of Interior for a review of the decision by the Minister of Interior. Within seven (7) days of receipt of the application, the Minister of Interior shall review the decision and notify the applicant of the determination in writing at the last provided address of the applicant. 5) With respect to non-Iraqi legal entities or individuals not normally resident in Iraq that provide security services to Diplomatic and Consular Missions and their personnel, or to the official humanitarian, reconstruction or development projects in Iraq fWlded by such missions, the Diplomatic and Consular Missions may intervene on behalf of the PSC applying for registration and any otl1er requirements and matters under this Order. Where approved by the Minister of Interior, the certification or·guarantee of the relevant Mission may be accepted in satisfaction of the requirements of this Order in lieu of a direct submission by the PSC, save that Section 6(1) shall apply. The Minister of Interior may revoke its acceptance of such certification or guarantee where the PSC in question breaches trus memorandum or any other law in force in Iraq. Any decision to revoke must be based on reasonable grounds and be proportional to the breach of the law initiating such action. The Minister will take into account actions taken by the PSC with respect to individual violations (e.g. termination, prompt and open coordination with law enforcement) in determining whether its acceptance should be revoked as a result of such violations. Section 11 Entry into Force r;;(if; ~~~~;~on dare of sign~~e. L. Paul Bremer, Administrator Coalition Provisional Authority CP AIMEM/26 June 2004/17 8 Section 12 Annexes Annex A: USE OF FORCE Annex B: CODE OF CONDUCT FOR PSCs OPERATING IN IRAQ Annex C: REFERENCES CPA/MEMJ26 June 2004/17 9 Annex A: USE OF FORCE RULES FOR THE USE OF FORCE BY CONTRACTORS IN IRAQ NOTHING IN THESE RULES LIMITS YOUR INHERENT RIGHT TO TAKE ACTION NECESSARY TO DEFEND YOURSELF. 1. CONTRACTED SECURITY FORCES: Cooperate with Coalition, Multi-national and Iraqi Security Forces and comply with theater force protection policies. Do not avoid or run Coalition, Multi-national or Iraqi Secmity Force checkpoints. If authorized to carry weapons, do not aim them at Coalition, Multi-national or Iraqi Secmity Forces. 2. USE OF DEADLY FORCE: Deadly force is that force which one reasonably believes will cause death or serious bodily harm. You may use NECESSARY FORCE, up to and including deadly force, against persons in the following circumstances: a. In self-defense. b. In defense of persons as specified in your contract. c. To prevent life threatening offenses against civilians. 3. GRADUATED FORCE: You should use graduated force where possible. The following are some techniques you can use if their use will not unnecessarily endanger you or others. a. SHOUT; verbal watnings to HALT. b. SHOVE; physically restrain, block access, or detain. c. SHOW; yow- weapon and demonstrate intent to use it. d. SHOOT; to remove the threat only where necessruy. 4. IF YOU MUST FIRE YOUR WEAPON: (1) Fire only aimed shots. (2) Fire with due regru·d for the safety of innocent bystanders. (3) Immediately repmt incident and request assistance. 5. CIVILIANS: Treat Civilians with Dignity and Respect. a. Make evety effmt to avoid civilian casualties. b. You may stop, detain, seru·ch, and disarm civilian persons if requiTed for your safety or if specified in yow- contract. c. Civilians will be treated humanely. CPA/MEMJ26 June 2004/17 10 d. Detained civilians will be tumed over to the Iraqi Police or Coalition or Multi- national Forces as soon as possible. 6. WEAPONS POSSESSION AND USE: Possession and use of weapons must be authmized by the MinistJy of Interior and must be specified in your contract. a. You must cany proof of weapons authotization. b. You will maintain a cunent weapons training record. c. You may not join Coalition or Multi-national Forces in combat operations except in self-defense or in defense of persons as specified in your contracts. d. You must follow Coalition or Multi-national Force weapons condition rules for loading and clearing. CPA/MEMJ26 June 2004/17 11 Annex B: CODE OF CONDUCT FOR PRIVATE SECURITY COMPANIES OPERATING IN IRAQ Private Security Company Code of Conduct for Operations in Iraq As a duly registered and vetted Ptivate Secwity Company, the following pledge is made: To conduct operations professionally with honesty, sincerity, integrity, fidelity, morality and good conscience in all dealings with clients To preserve forever clients' confidence under any and all circumstances consistent with law and deal justly, and impattially with each situation with each individual, inespective of social, political, racial, ethnic, or religious considerations, economjc status, or physical characteiisti cs. To conduct all operations within the bounds of legality, morality, and professional ethics. To counsel clients against any illegal or unethical course of action. To explain to the full satisfaction of clients all applicable fees and charges and to render accurate, factual and timely rep01ts. To supp01t to the best of ability the professionalism of Private Secmity Companies operating in Iraq; to contribute to better community relations; through work and deed to elevate the status of the Private Secmity Company profession. To ensure that all employees adhere to this code of conduct. CPA/MEMJ26 June 2004/17 12 Annex C: COALITION PROVISIONAL AUTHORITY ORDER 3 (REVISED) (AMENDED) WEAPONS CONTROL COALITION PROVISIONAL AUTHORITY MEMORANDUM 5 IMPLEMENTATION OF WEAPONS CONTROL ORDER N0.3 COALITION PROVISIONAL AUTHORITY MEMORANDUM SA MEMO 5 ANNEX A COALITION PROVISIONAL AUTHORITY ORDER 27 ESTABLISHMENT OF THE FACILITIES PROTECTION SERVICE COALITION PROVISIONAL AUTHORITY ORDER 54 TRADE LIBERALIZATION POLICY WITH ANNEX A COALITION PROVISIONAL AUTHORITY ORDER 64 AMENDMENT TO THE COMPANY LAW NUMBER 21 OF 1997 COALITION PROVISIONAL AUTHORITY ORDER 91 REGULATION OF ARMED FORCES AND MILITIAS WITHIN IRAQ CPA/MEMJ26 June 2004/17 13