The $40 Billion Iraqi Money Trail

[BBalls]

Follow The Money Trail

It has been called the largest airborne transfer of currency in the history of the world. But finding out what happened to all the money involved has become one of the biggest financial mysteries of all time.

Beginning in the very earliest days of the war in Iraq, the New York Federal Reserve shipped billions of dollars in physical cash to Baghdad to pay for the reopening of the government and restoration of basic services.

By one account, the New York Fed shipped about $40 billion in cash between 2003 and 2008. In just the first two years, the shipments included more than 281 million individual bills weighing a total of 363 tons. Soon after the money arrived in the chaos of war-torn Baghdad, however, the paper trail documenting who controlled the cash began to go cold.

The following are photos obtained by CNBC that document some of these shipments and show how the money was handled.

Unloading the Money

American troops observe the unloading of cash from a C-17 at Baghdad International Airport. The money was packed onto pallets inside a heavily guarded New York Federal Reserve compound in East Rutherford, N.J., trucked to Andrews Air Force Base outside of Washington, and flown by military aircraft to Baghdad International Airport.

Wrapped Cash in Baghdad

Pallets of cash are unloaded at Baghdad International Airport. The blue wrapping comes from the New York Federal Reserve. A typical pallet held 640 bundles, which the handlers called “bricks,” with a thousand bills in each bundle. Each pallet weighed 1,500 pounds, and they were separated by color. Gold seals were used for $100 bills, brown seals held $50 bills, purple seals $20, and so on.

Creating a Paper Trail

The money was counted at each step of the way—every time pallets moved, someone was responsible for counting the "bricks" of currency to make sure none had been stolen. The chain of custody of the cash was rigorously documented as it left the custody of the New York Fed and was signed over to Air Force officers, who oversaw the loading of C-17 transport planes and flew with the bales of money on the long flight to Baghdad.

Breakdowns on the Road

On one mission, a truck carrying cash broke down on the way to the Central Bank of Iraq. Here, Iraqis transfer the cash to another vehicle during a dangerous moment on the open road. The route was a perilous journey of about seven miles over a road the U.S. military called “Route Irish” through territory often controlled by insurgents. Travelers faced the threat of rocket-propelled grenades, mortars, car bombs, and improvised explosive devices.

Arrival at an Iraqi Bank

Iraqis unload cash from a convoy vehicle at a regional Iraqi bank. A previously unknown Coalition Provisional Authority (CPA) official was tasked with picking up the bales of billions as they were unloaded from C-17s and arranging for them to get to the Central Bank of Iraq in downtown Baghdad.

Billion-Dollar Garbage Truck

The CPA's cash courier, whose first name is Basel, says he loaded $1 billion in cash into the back of this garbage truck to throw off any insurgents who were watching the convoys. None of them would have thought so much cash would be inside this truck.

$3 Billion Cash, in Iraq

American soldiers pose in front of roughly $3 billion in cash inside the vault of the Central Bank of Iraq.

Missions to Transport Cash

American troops in a CH47 Chinook helicopter embark on a mission to fly $1.4 billion in cash to the city of Erbil.

The Dangerous ‘Route Irish’

US soldiers help load a convoy vehicle with cash. Transit along Route Irish was so dangerous that returning American GI’s often posted YouTube videos of their trips, just for the bragging rights of having been there. Not only was Route Irish an exceptionally dangerous thoroughfare, but transporting billions of dollars in cash considerably adds to the risks involved.

[ems]

Good post. The photos bring to life the news article that was posted yesterday: