COMPLEX NETWORKS AND METHODS OF SMUGGLING DOLLARS FROM IRAQ TO IRAN.. AMERICAN REPORT REVEALS THE DETAILS, 13 FEB

 COMPLEX NETWORKS AND METHODS OF SMUGGLING DOLLARS FROM IRAQ TO IRAN.. AMERICAN REPORT REVEALS THE DETAILS

An American report stated that Numbers Massive Central Bank Auctions Iraqi In selling hard currency, it raises doubts and concerns about the possibility of smuggling a large part of the currency to Iran.

The report stated that “the Central Bank’s currency sales amounted to more than $81 billion during 2024, a significant increase over 2023, when sales were nearly $41 billion.”

US President Donald Trump signed a presidential memorandum on Wednesday to take immediate action by federal agencies to prevent Iran from using the financial system Iraqi.

Iraqi economic experts say that “the country is facing a difficult test, as Baghdad It wants to meet the US sanctions, while at the same time seeking to maintain the stability of the country’s economy and not plunge it into new crises.”

According to the report, “Iran is exploiting the financial system in Iraq In order to circumvent international sanctions, and find an important outlet to obtain hard currency and smuggle it to Tehran.

Professor of International Economic Relations, Abdul Rahman Al-Mashhadani, confirmed that “exploitation of…Iran For the Iraqi financial system, it is a problem that we have warned about for years,” noting that “there are a set of methods that are followed by IranIn Iraq, which is clearly evident in the trade balance that is in Tehran’s favor, as it exports Baghdad”It is worth less than a billion dollars to this neighboring country.”

Republican Representative Joe Wilson revealed that Trump issued a directive calling on the Treasury Department and other US agencies to take immediate steps to ensure that the financial system is not used. Iraqi before Iran In order to evade or bypass sanctions.

He also directed that the Gulf countries should not be used as transshipment points in order to evade sanctions.

Wilson explained in a post on the X platform, which he attached to a picture of the decision signed by Trump, that these steps should ensure that it is not used. Iran For the financial system Iraqi To evade or bypass sanctions, and not use the Gulf states as transshipment points for Tehran.

Academic and economics professor Nabil Al-Marsoumi said, “Iran officially exports about $12 billion to Iraq, and all of these are revenues generated in dollars for Tehran,” noting that “these Numbers It only reflects what is happening on the trade front, but there is a lot of money being smuggled through complex networks.”

Al-Marsoumi agrees that “there is a group of importers, banks, and money transfer offices that form networks that rely on fabricated documents, whether in quantity or value, in order to transfer billions of dollars annually,” stressing that “there are two types of dollar smuggling in Iraq, one to bring hard currency into the Iraqi market, and the second to smuggle it back to Iran.”

In August 2023, the National Security Agency announced Iraqi In a statement, “The most prominent currency smuggling networks were overthrown, which included a group of defendants who carried out suspicious financial and banking activities and who admitted to using fictitious companies that carried out commercial activities as a cover for currency smuggling operations outside the country.”

And you need Iran to currency Dollar In order to stabilize its deteriorating economy, which has been severely affected by US sanctions, while the troubled Iranian currency has lost much of its value.

The mechanisms followed by Tehran in Iraq Official institutions such as the Central Bank, or private banks, some of which are fronts for political parties,” according to what was confirmed by MP Jamal Koujar, a member of the Parliamentary Finance Committee.

To ensure compliance with US standards on money laundering and sanctions on Iran, more than 20 Iraqi banks have been banned from making dollar transfers, but they are still operating in Iraq Using the dinar.

“Among the most prominent methods followed by,” Koger said, Iran “By exploiting the commercial sector, which provides Tehran with the goods, the invoices are inflated. For example, a deal may be worth one million dollars, but on paper it becomes worth four million dollars,” he said, noting that “the second method that has begun to spread is the establishment of Iranian factories inside Iraq, and their products are sold in the market, and the revenues are transferred to Iran through specialized networks.”

Some of the cash is even sent directly by individuals crossing the border into Iran, especially with border crossings being lax in tracking or preventing currency smuggling.

Professor of International Economic Relations, Abdul Rahman Al-Mashhadani, said, “The private sector…Iraqi Which imports billions from Iran, usually depends on collecting Dollar From the parallel market, through specific exchange networks or even directly from individuals,” stressing that “these financial transactions with Iran It is usually not done through the Central Bank, especially after the electronic platform was imposed in an earlier period.”

Al-Mashhadani pointed out that “there is information confirming that there is counterfeit Iraqi currency being printed in Iran, and it is being pumped into the Iraqi market to obtain dollars.”

He explained that “there are armed factions in Iraq, some of which have established investment companies that transfer billions of dollars directly to Iran.”

“Despite talk of Iraqi-Iranian exchanges using the Iranian toman, the bulk of the deals are done in US dollars,” Al-Mashhadani confirmed.

Al-Mashhadani asked, “How are goods worth about $25 million purchased daily from Iran?”

Among the means by which Tehran exploits Baghdad, according to Al-Mashhadani, are “transportation operations or the sale of Iranian oil as Iraqi oil, where the exchanges take place in territorial waters in a move to circumvent international sanctions.”

Al-Mashhadani defined the mechanism as “fabricating certificates of origin and export for this oil as being from Iraq, and it is re-exported to countries in East Asia, which resell it.”

The United States announced yesterday, Thursday, the imposition of financial sanctions, the first since the inauguration of President Donald Trump, targeting an “international network” accused of transporting Iranian oil to China to finance Tehran’s military activities.

The US Treasury Department said in a statement that “the sanctions target an international network that facilitates the transfer of millions of barrels of Iranian crude oil, worth hundreds of millions of dollars, to China.”

In early 2023, the Central Bank announced Iraqi Adopting an electronic platform to monitor sales movement Dollar And money laundering operations.

Academic and professor of economics, Al-Marsoumi said, “The mechanisms that were put in place during the past period to curb the smuggling of currency to and from Iraq did not succeed, especially the electronic platform.”

He added, “In some Iraqi markets, transactions are conducted in Iranian tomans, but these amounts are exchanged again domestically.”Iraqi In dollars.

At the beginning of this year, the Central Bank stopped Iraqi Working with the mechanisms of the electronic platform related to selling the dollar, while he pointed out the continuation of the mechanism for granting Dollar For airport travelers.

Al-Marsoumi stated that “the platform did not achieve its intended purpose, as the Central Bank’s sales increased from Dollar During the period following the opening of the platform, importers were simply submitting fabricated invoices, and even if they were tracked in a proper manner, their forgery could not be detected.”

Koger agrees that “the electronic money transfer platform has not been able to stop the smuggling of hard currency from Iraq To Iran, networks are active in transferring Dollar Cash in parallel markets.

Al-Mashhadani feared that “it will reach…Baghdad The effects of international sanctions on Iran, including Washington’s recent decisions to stop importing Iranian gas for the benefit of Iraq.

He said, “The economy Iraqi He may be shocked by these decisions, especially since Iraq It depends on Iranian gas to generate electricity, and a crisis could occur if an alternative to Iranian gas is not found.

The electricity issue is sensitive in Iraq, as its population of 43 million people suffer from frequent power outages that may last up to 10 hours daily. The situation is made worse by the high temperatures that reach 50 degrees during the summer.

If the sanctions are expanded to include the banking system, it will lead to more economic pain, especially since 28 banks are subject to sanctions out of 62 banks in Iraq.

Kocher believes that “Iraq will not be able to sever its economic ties with Iran, especially with the heavy reliance on gas imports to generate electricity for the Iraqi provinces.”

He said, “The Iraqi government must talk to the American authorities, in order to continue taking exceptions to ensure the continued flow of gas.”

The United States has always given Iraq Exemptions from the application of sanctions by paying money to Iran for electricity supplies, provided that Tehran uses the money only for “non-sanctionable transactions” such as the purchase of humanitarian goods, including food and agricultural products.

On Wednesday, Trump canceled the exemption granted to Iraq to import electricity and gas from Iran He also decided to prevent Tehran from “exploiting Baghdad’s money.”