80% of sales are suspicious.. An American report reviews the mechanisms of dollar smuggling using the Iraqi banking system and the central bank

80% of sales are suspicious.. An American report reviews the mechanisms of dollar smuggling using the Iraqi banking system and the central bank


80 percent of sales are suspicious.. An American report reviews the mechanisms of dollar smuggling using the Iraqi banking system and the central bankA report published by the American Wall Street Journal revealed exciting information about the American move through the Federal Bank against dollar smuggling with suspicious operations and using the Iraqi banking system and the central bank.

The American newspaper stated, “American and Iraqi officials say that the stricter controls imposed by the Federal Reserve Bank in New York regarding dollar transactions by Iraqi banks last November are a step aimed at curbing money laundering and illegal smuggling of dollars to Tehran and Damascus.” .

She added that “successive US administrations have postponed the entry of the Iraqi banking system into the global money transfer mechanisms so far, due to the years of weak governments in Iraq and the crises represented by the rebellion during the US occupation, leading to the control of ISIS over large parts of the country.”

According to US and Iraqi officials and official data, since the introduction of the new measures, 80% or more of daily dollar transfers to Iraq, which previously totaled more than $250 million on some days, have been blocked for reasons including insufficient information. The destination of this money or because of other errors.

The American newspaper pointed out that “in light of the scarcity in the availability of the dollar, the Iraqi dinar fell by up to 10% against the dollar, which caused a strong rise in the prices of imported goods, including basic commodities such as eggs, flour and cooking oil.”

The report explained the mechanism for transferring the dollar from the US Federal Reserve to the Iraqi Central Bank, where planes transport shipments of US currency to Baghdad every few months, indicating that additional dollars flow electronically through transactions carried out by Iraqi banks, which are withdrawn from official Iraqi accounts in The Federal Reserve Bank of New York is where the proceeds from oil sales are deposited.

And US officials acknowledged that “the strict rules for electronic dollar transfers by Iraqi banks were not a surprise to officials in Baghdad, explaining that they were implemented jointly last November, after two years of discussion and planning by the Central Bank of Iraq, the US Treasury and the Reserve Bank.” The Federal Reserve, stressing that “the increase in the exchange rate of the dollar was not due to the new measures.”

And she explained, “According to the new procedures applied, banks must submit requests for dollar transfers through a new electronic platform with the Central Bank, and then the Federal Reserve Bank of New York will review them.”

The report quoted US officials as saying that this system “aims to limit the use of the Iraqi banking system in order to smuggle dollars to Tehran, Damascus and safe havens for money laundering throughout the Middle East.”

According to the report, “the old rules, it was not obligatory for Iraqi bank account holders to disclose the party to which they send money until after the dollars have already been transferred.”

The report also quoted a US official as saying that these measures would reduce “the ability of malicious parties to use the Iraqi banking system.”

The report pointed out that both the US Treasury and the Central Bank of Iraq declined to comment, but the Central Bank of Iraq described the new electronic platform in a statement issued on December 15, noting that it requires providing “full details about customers who want to transfer money.” Including who are the ultimate beneficiaries of it, adding that “a number of errors are discovered and what is required of the banks is to repeat the process,” noting that these procedures will require additional time before approval is obtained and passed by the international mechanism. .

The report pointed out that US officials have been exerting pressure on Iraq for years in order to strengthen its banking controls, noting, quoting US officials at the time, that the Federal Reserve Bank and the Treasury Department temporarily stopped in 2015 the flow of billions of dollars to the Central Bank of Iraq because of their fears of The dollars were on their way to Iranian banks and may be transferred to ISIS militants.

And the American newspaper considered, in its report, that the impact of the new controls can be seen in the sharp decline in bank transactions in dollars, which the Central Bank tracks on its website, adding that on October 17 of last year, that is, before the entry into force of the new controls, Daily transfers from Iraq’s official accounts at the Federal Reserve Bank of New York and other external institutions amounted to $224.4 million, while on January 17, it amounted to $22.9 million, which is equivalent to a decline of 90%.

And while US officials say, according to the “Wall Street Journal,” that this financial confusion will ease with the compliance of Iraqi account holders with the new controls, the newspaper pointed out that “Iraqi bankers and merchants consider that the new rules aim to stop the schemes used to steal dollars.”