Post From Wealthwatch.world Chat Room
News With Links & Discussion
Wealthwatch Late Friday Evening Chat 12-11-15 Part 1 of 2
chattels: Economic Commission alludes to the possibility of re-draft budget to the government
chattels: He guessed be returned draft of the budget bill to the government to amend some paragraphs and demand from the Council of Ministers of Finance and the Ministry of reformat again about more accurate and detailed." The decision of the Prime Minister to freeze investment projects in the general budget expenses contributed to the expansion into expenses Operating in general. "
chattels: " The decision of the Prime Minister to freeze investment projects in the general budget expenses " chattels: wealthwatch.world/showthr...
chattels: Council Anbar: Security situation in the province and more controlled than before 10/12/2015 13:29
chattels: He added that" the security and military forces took control of most areas of Anbar, a continuous purge the other in the province areas and the expulsion of terrorists. " wealthwatch.world/showthr...http://wealthwatch.world/showthread.php?tid=3264
chattels: The Islamic State’s Sovereign Wealth Fund by Nibras Kazimi This is not a journalistic investigation. I am just sharing concerns that are circulating in Baghdad about the caliphate’s financing. An Iraqi banking source has told me that the Islamic State (IS) is making a minimum of 25 million USD per month by participating in the Central Bank of Iraq’s (CBI) ‘dollar auction’.
This adds up to approximately 300 million dollars a year, far outpacing how much IS is making off oil smuggling, according to some estimates. wealthwatch.world/showthr...http://wealthwatch.world/showthread.php?tid=3266
chattels: An Iraqi banking source has told me that the Islamic State (IS) is making a minimum of 25 million USD per month by participating in the Central Bank of Iraq’s (CBI) ‘dollar auction’.
chattels: The US Treasury and the Federal Reserve launched an investigation into the CBI’s dollar auction, which prompted a temporary hold on sending dollars to Baghdad in the summer, according to a Nov. 3 front-page story that appeared in the Wall Street Journal. The investigation looked into whether IS was somehow benefiting from the flow of these large sums of money through the auction, that in the year 2015 amounted to over 42 billion dollars.
chattels: However, a new private sector investigation in Iraq is uncovering troubling signs that IS is continuing to use the dollar auction to generate money. “They learned how to do it in the ‘key card’ channel, and they brought in cash in Iraqi dinars to continue doing it even after that channel was shut down,” an Iraqi banking source who is familiar with the investigation told me.
chattels: “This is the caliphate’s sovereign wealth fund. They invested it in the dollar auction. The monthly revenues, at minimum, add up to 25 million dollars, and can go up to 40 or 50 million dollars depending on many factors, such as the difference in the exchange rate, and how much pay offs there are at any given time,” the source said.
chattels: There has been much said about exactly how much money (in dinars and in hard currency) was there in the vaults of Iraqi state banks in Mosul at the time of the jihadist takeover. There had been press reports, as well as statements from the state banks, suggesting that there was little cash there. The source maintains that estimates placing those funds at anywhere between 1.8 to 2.6 trillion Iraqi dinars are the ones closest to reality.
chattels: What is the “dollar auction”? It is a fishy affair.
chattels: The simplest way money is made lies in the margin of difference between the rate at which the CBI sells dollars in exchange for Iraqi dinars to the private banks, and that of the market. For example, the CBI sells at 1,187 dinars to a dollar, but the market exchange hovers between 1,205 to 1,230 dinars to a dollar (this would be the rate the private banks would sell at).
The CBI takes a cut, and so do the private banks, and then the money flows in a largely unregulated and opaque process through hundreds of exchange houses. Over the last five years, the CBI sold about 320 billion US dollars to some 23 private Iraqi banks.
The CBI is only allowed to sell dollars to the private banks if the private sector needs dollars for an import transaction. It was estimated by the parliament’s Finance Committee that the sale of 200 billion dollars involved in the auction was suspect, and did not reflect actual mercantile activity.
Private banks colluded with exchange houses to create a fake paperwork trail of invoices for private sector companies that don’t exist, or are not registered.
The Finance Committee uncovered hundreds of such examples over many months of investigation, and the issue has been the subject of public debate in Iraq for a while. The private banks and the exchange houses (in many cases owned by the same owners of the banks) work with several regional banks in Jordan, Lebanon, Turkey and the United Arab Emirates.
According to an Iraqi intelligence source, there were companies in Dubai with tens of employees creating such fake invoices over the last few years. In the last few months, this counterfeiting operation has largely moved to Baghdad. The imported goods never get to Iraq, but there is no reliable mechanism to match up the paperwork submitted to buy dollars with customs invoices at Iraq’s borders.
Anyways, the customs offices in Iraq are notoriously difficult to regulate. The Iraqi banking source quoted above tells me that only 20 percent of the invoices are legitimate, that is, that they are actual
chattels: The dollar auction is primarily controlled by five banks and several exchange houses. One of the exchange houses is owned by a Palestinian who holds Syrian, Iraqi, Jordanian, and Turkish citizenship. He used to be a partner of Uday Saddam Hussein’s in the cigarette trade.
Two of the prime movers on the private banking side are Iraqis in their early thirties, having made fortunes amounting to hundreds of millions of dollars within the span of a few years. One of them now resides in Los Angeles, CA.
chattels: Several influential Iraqi politicians are tied into the dollar auction through relationships with these banks and exchange houses. At least two political parties have their own ‘sovereign wealth funds’—just like that of IS—that amount to tens of millions of dollars that they circulate through the dollar auction. The problem of complicity is not confined to Iraq; influential nationals of Jordan, Lebanon, Turkey and the UAE are also involved.
chattels: Can it be fixed? Read more at wealthwatch.world/showthr....
chattels: This example highlights how difficult it would be to shine a light onto the inner workings of the Iraqi banking sector, both governmental and private.
Trying to parse through the local corruption, and Iran’s money, while going after the IS ‘sovereign wealth fund’ is going to be exceedingly difficult, not to mention it may take a long time to figure out.
In the meantime, IS is potentially raking-in a minimum of 300 million dollars a year from the CBI’s dollar auction, according to the private investigation.
chattels: Reidar Visser @reidarvisser 10h10 hours ago Whatever interpretation Turkey may have of meeting Thur, #Iraq PM Abadi is unimpressed, asks for UNSC intervention pmo.iq/press2015/11-12-20... … http://pmo.iq/press2015/11-12-20152.htm
chattels: Alliance forces looking house Jubouri budget 2016 :: 2015/12/11 20:49 • [Baghdad-where] Search alliance of the Iraqi forces, the home of House Speaker Salim al [leader of the Alliance] project financial budget for the 2016 law. Information Office of the Office of al-Jubouri said told all of Iraq [where] that the meeting "discussed the general budget for 2016 and the need to speed up adopting the terms."
chattels: The head of the parliamentary finance committee Faleh ........................
chattels: "the completion of the budget discussion with the Ministry of Finance and all the concerned authorities and the completion of discussions over the next five days."
Comments may be made at the end of Part 2 Thank You