Iraqi Banks Allegedly Funded Iranian Terrorism

A recent investigation revealed that Iraqi banks exploited a U.S.-created financial system to transfer vast sums of money to Iran and its associated terrorist groups. Ali Ghulam's banks, which operated with minimal oversight, funneled billions of dollars through fraudulent invoices to front companies, circumventing U.S. sanctions and raising significant money-laundering concerns. Audits indicated that around 80% of the daily wire transfers, potentially amounting to $800 million per week, were untraceable, with funds linked to Iran's Islamic Revolutionary Guard Corps (IRGC). Despite warnings from U.S. officials since 2012, the system remained largely unchanged until stricter scrutiny led to the banks' shutdown in 2022. The lax controls of the system, initially designed to stabilize Iraq, ultimately facilitated the flow of illicit funds to Iranian militias and other sanctioned entities. This misuse underscores the challenges in enforcing sanctions and monitoring financial systems in conflict zones.