U.S. says Iraqis are helping Iran skirt nuclear sanctions

[SocalDinar]

U.S. says Iraqis are helping Iran skirt nuclear sanctions

Article by: JAMES RISEN and DURAID ADNAN , New York Times

Updated: August 18, 2012 - 6:57 PM

Banks and oil smugglers are suspected of aiding Tehran, putting Washington in a delicate situation.

WASHINGTON - When President Obama announced last month that he was cutting off a little-known Baghdad bank from any dealings with the U.S. banking system, it was a rare public acknowledgment of a delicate problem for an administration hoping for a reliable ally in the country where U.S. troops just fought a war: For months, Iraq has been providing economic assistance to Iran, skirting the sanctions imposed on Tehran because of its nuclear program.

The bank singled out by the United States, the Elaf Islamic Bank, is only part of a network of financial institutions and oil-smuggling operations that, according to current and former U.S. and Iraqi government officials and experts on the Iraqi banking sector, has provided Iran with a crucial flow of dollars at a time when sanctions are squeezing its economy.

The Obama administration is not eager for a public showdown with the government of Prime Minister Nouri al-Maliki over Iran just seven months after the last U.S. troops withdrew from Baghdad.

Still, the administration has held private talks with Iraqi officials to complain about specific instances of financial and logistical ties between the countries, officials say, although they do not regard all trade between them as illegal, or as in the case of smuggling, as something completely new. In one recent instance, when U.S. officials learned that the Iraqi government was aiding the Iranians by allowing them to use Iraqi airspace to ferry supplies to Syria, Obama called Al-Maliki to complain. The Iranian planes flew another route.

"We will pursue, and are actively pursuing, efforts to prevent Iran from evading U.S. or international financial sanctions, in Iraq or anywhere else," said David Cohen, the Treasury Department's undersecretary for terrorism and financial intelligence.

Some current and former U.S. and Iraqi officials and banking and oil experts, however, say that Iraqi government officials are turning a blind eye to the large financial flows, smuggling and other trade with Iran. In some cases, they say, government officials, including some close to Al-Maliki, are directly profiting.

"Maliki's government is right in the middle of this," said one former senior U.S. intelligence official who now does business in Iraq.

'Illicit proliferation activities'

In announcing that he was "cutting off" Elaf Islamic Bank, Obama said it had "facilitated transactions worth millions of dollars on behalf of Iranian banks that are subject to sanctions for their links to Iran's illicit proliferation activities."

But the treatment the bank has received in Baghdad since it was named by Obama suggests that the Iraqi government is not only allowing companies and individuals to circumvent the sanctions but also not enforcing penalties for noncompliance.

Iraqi banking experts said last week that the bank was still being allowed to participate in the Iraq Central Bank's daily auction at which commercial banks can sell Iraqi dinars and buy U.S. dollars. These auctions are a crucial pathway for Iranian access to the international financial system. Western officials say that Iran seeks to bolster its reserves of dollars to stabilize its exchange rates and pay for imports.

Iraqi and U.S. officials say Iranian customers are able to move large amounts of cash through the auction, and from there into banks in regional financial centers like Dubai, United Arab Emirates, or Amman, Jordan, and then into the international banking system.

Mudher Salih, the central bank governor, said that Elaf Islamic Bank was being allowed back into the auction because Elaf officials had denied any wrongdoing. "Elaf Bank is attending the auctions and they are telling us that they didn't violate the law, and saying that they didn't deal with any Iranian institutes," Salih said.

While Iraq has tried to impose more stringent reporting requirements that might pick up illegal transfers, officials with knowledge of the Iraqi banking industry say that banks, hawala houses, an unofficial global network of money-traders, and their Iranian customers are finding ways around them, often by forging documents that make it look as if the money transfers are to finance legitimate trade between Iraq and other countries.

Thanks to Iraq's growing oil revenue, the Iraqi central bank has about $60 billion in foreign exchange reserves, held in accounts at the Federal Reserve Bank of New York, with which to meet the demand for dollars. But the new flight of dollars out of Iraq is prompting widespread criticism of the central bank and of the Iraqi government.

Busting sanctions

The accusations of high-level Iraqi government involvement in sanctions-busting have roiled Iraqi politics and invariably reflect on al-Maliki, since many Iraqi officials now say that he has taken effective control of the Iraqi central bank, which is nominally independent.

Several U.S. and Iraqi banking and government officials also say that Iranian organizations have gained effective control over at least four Iraqi commercial banks through Iraqi intermediaries. That gives Iran direct access to the international financial system, supposedly denied to Tehran by the economic sanctions.

Even as the United States has moved to tighten the vise against Iran this summer, the Al-Maliki government has sought to enhance its already deep economic and political ties with Iran.

http://www.startribune.com/world/166661176.html?page=1&c=y

Edited August 19, 2012 by SocalDinar

[Maggie123]

Wow Great Article SocalDinar, Thank You!

I have to go back and read it again! Lot's there to take in.

Maliki in the middle and we got their $$$ in New York!

[SocalDinar]

Wow Great Article SocalDinar, Thank You!

I have to go back and read it again! Lot's there to take in.

Maliki in the middle and we got their $$$ in New York!

First I have heard from a news agency that the Fed is holding the reserves in New York

Sure is a lot of strange things coming out, I think that something worldwide may be close at hand.

[Maggie123]

First I have heard from a news agency that the Fed is holding the reserves in New York

Sure is a lot of strange things coming out, I think that something worldwide may be close at hand.

I know SocalDinar, there have been alot of things lining up.

We have had quite a few warnings that we better get ready, and hang on, because it's going to get bumpy.

SocalDinar, do you think Shabibi is in on this?

Now I wish I would have followed Dalite and Keeps more last night, I think they were trying to figure that out.

Oh I hope we aren't going to war! Let's hope all the dirty dogs fall before that happens.

[SocalDinar]

I know SocalDinar, there have been alot of things lining up.

We have had quite a few warnings that we better get ready, and hang on, because it's going to get bumpy.

SocalDinar, do you think Shabibi is in on this?

Now I wish I would have followed Dalite and Keeps more last night, I think they were trying to figure that out.

Oh I hope we aren't going to war! Let's hope all the dirty dogs fall before that happens.

Gut feeling is Shabs has the conviction to help the Iraqi people.

As far as war, I feel Israel will act soon. I hope I'm wrong but looks like they will commit before November. They will manipulate our foreign policies as they have in the past.

[Butifldrm]

Thanks Socal for the post. I've been waiting for the Hammer to come down on the Hard Currency moving from Iraq to Syria and Iran. In some way I felt the US was taking a blind eye approach to this whole scenario because it was allowing the CBI to pull in Trillions of Dinar. So patiently I will watch and hope that Shabs pulls the trigger before the whole system comes crumbling down. All I can say, is be ready to move fast when Shabs pulls the trigger. I'm thinking hard assetts.

[Dalite]

Last year, around June, EO13303 was up for renewal . It was renewed then, as it was again in May of this year. Inside of 13303, was also EO13315. It is my understanding that this was simultaneous with the creation of 2 new accounts at the FRBNY. One was for the DFI funds, and the other was for 5% of oil proceeds - to go to paying off the debt with Kuwait.

When Shabibbi started the currency auctions, an account was created stateside to hold the proceeds from the auctions ( Foreign Reserves).

This article does much to start tying some things together.

It is also interesting that the figure of $220 billion is very similar with the figure that has been attributed to frozen assets being reclaimed and added to the DFI funds.

The GOI s blaming the CBI, and the US is blaming the GOI.

This article is missing the standard translation issues inherit with Iraqi news sources, and may help paint a more accurate picture.

The GOI is claiming the CBI has been responsible for $220 billion lost to corruption since 2003, and I am not sure the sanctions against Iran have been in effect that long.

It is unlikely that the $220 billion came from CBI foreign reserve funds; it would more likely have to be funneled through the accused banks, from GOI oil proceeds. It will be interesting to see how the standard blame game that is usually fostered against unsuspecting suspects, and aimed at an uneducated audience's emotions to make it effective will play out when it s covered by western sources and aimed at a better educated audience.

This is a very interesting situation, and the scrutiny, combined with reporting from western sources, may start unraveling some of the unanswered questions that have been raised about CBI numbers.

Stap on the Seatbelts, it may be a bumpy ride...

[Lostrn]

"Iraqi banking experts said last week that the bank was still being allowed to participate in the Iraq Central Bank's daily auction at which commercial banks can sell Iraqi dinars and buy U.S. dollars. These auctions are a crucial pathway for Iranian access to the international financial system. Western officials say that Iran seeks to bolster its reserves of dollars to stabilize its exchange rates and pay for imports."

It just sounds like they got this part wrong, doesn't it??? Like it was supposed to be Iraq and not Iran in this sentence.This seems like it is one of two things; either it is the real reason the RV has been delayed-or- this is a false flag to encourage confusion.

Edited August 19, 2012 by Lostrn

[Maggie123]

Thank You Dalite That helped clear up a lot of questions.

When the article said reserves it threw me. Of Course DFI funds! Der Me

Can You imagine how we will all be reading the American version's of the upcoming news written for the (uneducated in all things dinar) Americans?

I think we will certainly have an edge to be able to disearn what is really going on.

Let's stick together like glue! We can help each other a lot!

[tandy]

question for my intelligent, political savy friends.....how does this scenario play out in real time...Obama embraces the Muslin world in one hand yet acts much differently on the other???? Something just does not add up to my pea brain! What is really going on in world affairs and polotics? And he has Muslim Brotherhood sympathisers on his staff?????????? Is he really condeming or chastising anyone or just giving lip service to the citizens of the good ole USA...just curious

[Maggie123]

question for my intelligent, political savy friends.....how does this scenario play out in real time...Obama embraces the Muslin world in one hand yet acts much differently on the other???? Something just does not add up to my pea brain! What is really going on in world affairs and polotics? And he has Muslim Brotherhood sympathisers on his staff?????????? Is he really condeming or chastising anyone or just giving lip service to the citizens of the good ole USA...just curious

Tandy I have been questioning that too.

We put Maliki in power and now with him being a dictator, here we are still "negotiating" to help keep him in?

Yet he is thumbing his nose at us and the Iran sanctions. Doesn't make sense.

[fastarnie]

Lip service

[SocalDinar]

question for my intelligent, political savy friends.....how does this scenario play out in real time...Obama embraces the Muslin world in one hand yet acts much differently on the other???? Something just does not add up to my pea brain! What is really going on in world affairs and polotics? And he has Muslim Brotherhood sympathisers on his staff?????????? Is he really condeming or chastising anyone or just giving lip service to the citizens of the good ole USA...just curious

I have trusting my local city councilmen. There is absolutely no way to know the truth anymore. Not that there ever really was.

[Biker]

Tandy hit the nail right on the head. Good job

[TrinityeXchange]

i don't believe it is lip service at all but of course my opinion isn't worth much more than 2bits. we are forced to draw conclusions on news that really isn't news to begin with. but what it looks like to me after i consider 1) the attack of the executive branch against the cbi accusing them of mafia ties and laundering money 2) the cbi refuting those claims and implicating maliki 3) the united states implicating maliki 4) united states presence back in iraq, it has been determined that maliki's power will be quelled.

at this point it doesn't matter what is or isn't true. things seem to have already been determined by the united states that maliki's regime must come to an end. maliki tried to plead his case by blaming the cbi but it failed. the united states has built its case and i imagine soon we will see united states' plan executed.

ps. one thing that we have to remember is that uncle sam had it already planned back in approx 2003 that the middle east would succumb. on that list was approximately 7 nation states (iraq, syria, libya, iran, afghanistan, etc etc). [if this is news to some, please take time out to study this information, look up general wesley clark] so in all of the intricacies we see taking place we have to remember not to miss the forest for the trees. maliki will not stand in the way of the united states executing its goal.

http://www.youtube.com/watch?v=9eSb-EpL4fY&feature=player_embedded

[TrinityeXchange]

pss. please disregard the minerva piece to the video i posted it is pure conjecture. my intent is not to push theory but i wanted to highlight factual information from a credible source.

[Butifldrm]

question for my intelligent, political savy friends.....how does this scenario play out in real time...Obama embraces the Muslin world in one hand yet acts much differently on the other???? Something just does not add up to my pea brain! What is really going on in world affairs and polotics? And he has Muslim Brotherhood sympathisers on his staff?????????? Is he really condeming or chastising anyone or just giving lip service to the citizens of the good ole USA...just curious

tandy, I normally read the State Department Press Briefing regularly. From the whole month of August, there has been one statement to the press concerning Iraq. The US may be putting pressure on Iraq, but they certainly are not releasing much info to the US press.

QUESTION: Yeah. Could you update us on the status of the American ambassadorship in Iraq?

MR. VENTRELL: I don’t have an update for you. On personnel decisions for ambassadorships, I refer you to the White House.

QUESTION: Okay. So it is the chargé d'affaires who’s taking care of things?

MR. VENTRELL: We still have a chargé.

QUESTION: Okay. But these are really very critical times for both Iraq and the United States, considering all that is going on in Syria and allegations that the Government of Iraq is releasing a wanted member of the Lebanese Hezbollah and so on. Do you know anything about that?

MR. VENTRELL: Which case are you referring to?

QUESTION: Well, the Iraqi Government is fixing to release a member of the Lebanese Hezbollah militia.

MR. VENTRELL: Well, first of all on the wider issue of our ambassadorship there, obviously, as soon as we’re able to nominate someone and fill that post, we look forward to doing that. As you know, I would also say that we did just have our ambassador to Afghanistan confirmed. We continue to urge the Senate to confirm our ambassador to Pakistan, and when we have an ambassador to nominate to Iraq, we will.

On the particular case that you’re discussing here, we continue to believe that Daqduq should be held accountable for his crimes. And while we do strongly oppose recent decisions by the Iraqi judiciary, protections for the accused are built into the judicial systems, including our own, and we understand that there is – we await another decision from the Iraq – from their highest appeal court.

QUESTION: Now, the United States has really invested a great deal of time, effort, and money in Iraq, and Iraq proposed itself as a robust U.S. ally. But they seem to be contradicting your position on Syria, especially with their ties to Iran. Could you in any way elaborate on this issue?

MR. VENTRELL: Well, we do have a good and robust and strategic partnership with the Iraqi Government. As you know, our Strategic Framework Agreement, which was signed a few years ago, really is the outline for our deep and intensive and ongoing relationship with the Iraqi Government on a number of fronts. Whether it’s with civil society and education and some of those areas, or again, on rule of law and other areas, we have an ongoing relationship with the Iraqi Government that is robust and covers a number of different areas.

http://www.state.gov/r/pa/prs/dpb/2012/08/196242.htm#IRAQ

[TrinityeXchange]

MR. VENTRELL: Well, we do have a good and robust and strategic partnership with the Iraqi Government. As you know, our Strategic Framework Agreement, which was signed a few years ago, really is the outline for our deep and intensive and ongoing relationship with the Iraqi Government on a number of fronts. Whether it’s with civil society and education and some of those areas, or again, on rule of law and other areas, we have an ongoing relationship with the Iraqi Government that is robust and covers a number of different areas.

the power of contract. it is already agreed and determined what must take place. maliki, if he attempts to violate the contract, will certainly be dealt with. the same way that when we violate our contract to pay taxes the irs certainly deals with us.

[yota691]

I say the norm to the folks of the USA and call it

[Maggie123]

tandy, I normally read the State Department Press Briefing regularly.

...

QUESTION: Now, the United States has really invested a great deal of time, effort, and money in Iraq, and Iraq proposed itself as a robust U.S. ally. But they seem to be contradicting your position on Syria, especially with their ties to Iran. Could you in any way elaborate on this issue?

MR. VENTRELL: Well, we do have a good and robust and strategic partnership with the Iraqi Government. As you know, our Strategic Framework Agreement, which was signed a few years ago, really is the outline for our deep and intensive and ongoing relationship with the Iraqi Government on a number of fronts. Whether it’s with civil society and education and some of those areas, or again, on rule of law and other areas, we have an ongoing relationship with the Iraqi Government that is robust and covers a number of different areas.

http://www.state.gov...196242.htm#IRAQ

Thank You Butfldrm That was interesting to see. Not for what they tell us, but for what they don't tell us.

Does that make sense? They certainly are not showing any of their cards. I wonder what their definition is of "robust"?

the power of contract. it is already agreed and determined what must take place. maliki, if he attempts to violate the contract, will certainly be dealt with. the same way that when we violate our contract to pay taxes the irs certainly deals with us.

Trinity Thanks for both of your post. Your first one was great and the last part of the youtube didn't bother me a bit. I had never heard that before, so thanks.

I looked up General Wesley Clark and he has quite the bio. It didn't surprise me to find that he was fired and dishonored, it's unfortunate for us that he would be treated that way for speaking the truth at that time. He would not go along with connecting Suddam to 911. BTW anyone who didn't check him out should know the video was made after they put him through a nightmare. He was defending his honor and speaking the truth to show what really happened.

I have been confused about what the US's role has been in Iraq lately. I saw that Biden went over to talk to Maliki and it seemed all talk of "Questioning" him got dropped and went back to more negotiating. From that I assumed we were backing him and he was off the hook. Never assume huh? I get your points loud and clear and they are very convincing. It makes more sense when you and Butifldrm point out that Maliki is under a contract. Now I see that Biden most likely went there to remind him of that, hence the Iranian planes taking a different route. It's hard to predict what Maliki will do next, but we will be finding out here in short order. I hope he make the right choices for Iraq and us. JMHO