US Treasury official says Iraq must act to avoid further action on banks

US Secretary of the Treasury Janet Yellen delivers a keynote address during the second annual Committee on Foreign Investment in the US Conference (AFP)
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Updated 14 September 2023
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US Treasury official says Iraq must act to avoid further action on banks

  • Iraq is committed to tighter financial regulations, combating smuggling of dollars, central bank chief says

BAGHDAD: Iraq’s central bank must address continued risks of the misuse of dollars at Iraqi commercial banks to avoid new punitive measures targeting the country’s financial sector, a top US Treasury official said, citing fraud, money laundering and Iran sanctions evasion.
In July, the United States barred 14 Iraqi banks from conducting dollar transactions as part of a wider crackdown on the illicit use of dollars.
Despite the crackdown, the senior US Treasury official, who spoke on condition of anonymity, said there were still other Iraqi banks operating with risks “that must be remediated.”
With more than $100 billion in reserves held in the US, Iraq is heavily reliant on Washington’s goodwill to ensure oil revenues and finances do not face US censure.
The official said the US action in July had been based on clear indications of illegal financial activity and the alleged crimes the Treasury was looking into included money laundering, bribery, extortion, embezzlement and fraud.
Iraq’s central bank governor has said Iraq is committed to implementing tighter financial regulations and combating the smuggling of dollars. The central bank did not immediately respond to a request for comment on Thursday.
Farhad Alaadin, the Iraqi prime minister’s foreign affairs adviser, said the government had taken “hard measures to make sure that Iraqi interests are protected while improving the banking sector and the transfer market.”
“The Iraqi government is serious about continuing on the path of reform and fighting corruption,” Alaadin said.
Iraq has more than 70 private banks, a relatively new feature in a sector that was almost entirely controlled by the state until Saddam Hussein was toppled in the US invasion of 2003.
Of those, just under a third are now on USblacklists.
“I chose to focus on the banks that still have access where I see continued risk,” the official told Reuters in Baghdad.
“It would be great if the central bank took the opportunity to address it directly, which would perhaps obviate the need (for the US) to take any further actions.”
The Iraqi government came to power with the support of powerful, Iranian-backed parties and so cannot afford to alienate Tehran, nor anger the parties and armed groups with deep interests in Iraq’s highly informal economy.
Iran’s foreign ministry did not immediately respond to a request for comment.
The 14 banks given dollar bans in July have urged the Iraqi government to remedy the measures against them and said they work in compliance with regulations.
The Treasury official said that Iraqi Prime Minister Mohammed Shia Al-Sudani’s government, which was appointed in October 2022, had been cooperative and there had been “progress,” something that had “not been necessarily the case” in the last 10 to 15 years.
However, there were still “vested interests comfortable with the status quo that can create friction to driving change,” the Treasury official said, without identifying who these were.

’MASSIVE THEFT’
The US measures have centered on Iraq’s so-called dollar auction, where the central bank requests dollars from the US Federal Reserve before selling them to commercial banks, which in turn sell to businesses in the import-dependent economy.
Between $200 million to $250 million is auctioned daily.
Before the enhanced US measures, large sums of money were illegitimately acquired by groups who would provide fake invoices. “Significant volumes” would then be smuggled to neighboring countries, including Iran, the official said.
A feature of a highly informal economy, the auction system was also used by thousands of small businesses that needed dollars but were not formally registered with the state, and so provided false information, Iraqi officials have said.
The enhanced scrutiny not only targets Iran but is part of a broader push to “normalize” Iraq’s financial system and combat a slew of financial crimes, the official said.
“I care about that (sanctions evasion), but we also have to care about massive theft and fraud and faked identity and ghost salaries,” the official said.
When Iraq began implementing enhanced measures via a new online platform in January that includes details on end-beneficiaries, roughly 80 percent of transactions were rejected but now that number is around 15 percent, Iraq’s central bank says.
Still, Iraqi officials say the measures have led to a dollar shortage, which has led the Iraqi dinar to change hands at more than 1,500 per dollar in the unofficial market in recent months, up to 15 percent weaker than the official rate of 1,320.
The US Treasury official said that the initial high rejection rate was largely tied to a “steep learning curve” on how to fill out forms and issues such as software bugs, that were now being addressed.


‘The janjaweed are coming’: Sudanese recount atrocities in RSF attack on a Darfur camp

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‘The janjaweed are coming’: Sudanese recount atrocities in RSF attack on a Darfur camp

  • The RSF has repeatedly claimed Zamzam and nearby Abu Shouk Camp were used as bases by the military and its allied militias
  • The paramilitaries destroyed Zamzam’s only functioning medical center, killing nine workers from Relief International
CAIRO: Umm Al-Kheir Bakheit was 13 when she first came to Zamzam Camp in the early 2000s, fleeing the janjaweed, the infamous Arab militias terrorizing Sudan’s Darfur region. She grew up, married and had three children in the camp.
Now 31, Bakheit fled Zamzam as the janjaweed’s descendants — a paramilitary force called the Rapid Support Forces — stormed into the camp and went on a three-day rampage, killing at least 400 people, after months of starving its population with a siege.
Bakheit and a dozen other residents and aid workers told The Associated Press that RSF fighters gunned down men and women in the streets, beat and tortured others and raped and sexually assaulted women and girls.
The April 11 attack was the worst ever suffered by Zamzam, Sudan’s largest displacement camp, in its 20 years of existence. Once home to some 500,000 residents, the camp has been virtually emptied. The paramilitaries burned down large swaths of houses, markets and other buildings.
“It’s a nightmare come true,” Bakheit said. “They attacked mercilessly.”
The attack came after months of famine
The attack on Zamzam underscored that atrocities have not ended in Sudan’s 2-year-old war, even as the RSF has suffered heavy setbacks, losing ground recently to the military in other parts of the country.
Throughout the war, the RSF has been accused by residents and rights groups of mass killings and rapes in attacks on towns and cities, particularly in Darfur. Many of RSF’s fighters originated from the janjaweed, who became notorious for atrocities in the early 2000s against people identifying as East or Central African in Darfur.
“Targeting civilians and using rape as a war weapon and destroying full villages and mass killing, all that has been the reality of the Sudan war for two years,” said Marion Ramstein, MSF emergency field coordinator in North Darfur.
Zamzam Camp was established in 2004 to house people driven from their homes by janjaweed attacks. Located just south of el-Fasher, the capital of North Darfur province, it swelled over the years to cover an area 8 kilometers (5 miles) long by about 3 kilometers (2 miles) wide.
In the spring of 2024, the RSF clamped a siege around Zamzam as it moved against el-Fasher, one of the last strongholds of the Sudanese military in Darfur.
Many have died of starvation under the siege, Bakheit and others said. “For too long, there was no option but to eat grass and tree leaves,” she said.
Famine was declared in the camp in August after RSF attacks forced the UN and aid groups to pull out of Zamzam. A comprehensive death toll from the famine is not known.
Ahlam Al-Nour, a 44-year-old mother of five, said her youngest child, a 3-year-old, died of severe malnutrition in December.
The RSF has repeatedly claimed Zamzam and nearby Abu Shouk Camp were used as bases by the military and its allied militias. It said in a statement that it took control of the camp on April 11 to “secure civilians and humanitarian workers.” It denied its fighters targeted civilians. The RSF did not reply to AP’s questions on the attack.
‘The janjaweed are coming’
Bakheit, who lived on the southern edge of Zamzam, said she heard loud explosions and heavy gunfire around 2 a.m. April 11. The RSF started with heavy shelling, and people panicked as the night sky lit up and houses burst into flames, Bakheit said.
By sunrise, the RSF-led fighters broke into her area, storming houses, kicking residents out and seizing valuables, Bakheit and others said. They spoke of sexual harassment and rape of young women and girls by RSF fighters.
“The children were screaming, ‘The janjaweed are coming’,” Bakheit said.
About two dozen women who fled to the nearby town of Tawila reported that they were raped during the attack, said Ramstein, who was in Tawila at the time. She said the number is likely much higher because many women are too ashamed to report rapes.
“We’re talking about looting. We’re talking about beating. We’re talking about killing, but also about a lot of rape,” she said.
The paramilitaries rounded up hundreds of people, including women and children. Bakheit said fighters whipped, beat, insulted and sexually harassed her in front of her children as they drove her family from their home.
She said she saw houses burning and at least five bodies in the street, including two women and a boy, the ground around them soaked in blood.
The fighters gathered Bakheit and about 200 other people in an open area and interrogated them, asking about anyone fighting for the military and its allied militias.
“They tortured us,” said Al-Nour, who was among them.
Al-Nour and Bakheit said they saw RSF fighters shoot two young men in the head during the interrogation. They shot a third man in the leg and he lay bleeding and screaming, they said.
One video shared online by RSF paramilitaries showed fighters wearing RSF uniforms by nine bodies lying motionless on the ground. A fighter says he is inside Zamzam and that they would kill people “like this,” pointing to the bodies on the ground.
Much of the camp was burned
The RSF rampage, which also targeted Abu Shouk Camp north of el-Fasher, went on for days.
The paramilitaries destroyed Zamzam’s only functioning medical center, killing nine workers from Relief International. They killed at least 23 people at a religious school, mostly young students studying the Qur’an, according to the General Coordination for Displaced Persons and Refugees in Darfur.
Much of the south and east of the camp was burned to the ground, the General Coordination said.
Satellite imagery from April 16 showed thick black smoke rising from several active fires in the camp. At least 1.7 square kilometers (0.65 square miles) appeared to have been burned down between April 10-16, said a report by the Yale School of Public Health’s Humanitarian Research Lab, which analyzed and published the imagery. That is about 10 percent of the camp’s area.
The imagery showed vehicles around the camp and at its main access points, which HRL said were probably RSF checkpoints controlling entry and exit.
By April 14, only about 2,100 people remained in the camp, according to the UN’s International Organization for Migration.
An arduous journey
After being detained for three hours, Bakheit, Al-Nour and dozens of other women and children were released by the paramilitaries.
They walked for hours under the burning summer sun. Bakheit and Al-Nour said that as they passed through the camp, they went by burning houses, the destroyed main market and bodies of men, women, children in the streets, some of them charred.
They joined an exodus of others fleeing Zamzam and heading to the town of Tawila, 64 kilometers (40 miles) west of El Fasher. Al-Nour said she saw at least three people who died on the road, apparently from exhaustion and the effects of starvation and dehydration.
“The janjaweed, once again, kill and torture us,” Bakheit said. “Like my mother did about 20 years ago, I had no option but to take my children and leave.”

Israel carries out strikes on two Syrian cities, Syrian state news agency says

An Israeli fighter jet fires a rocket as it flies over an area near the Syrian capital Damascus on April 30, 2025. (AFP)
Updated 03 May 2025
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Israel carries out strikes on two Syrian cities, Syrian state news agency says

  • Israel bombed Syria frequently when the country was governed by Assad, targeting a foothold established by his ally Iran during the civil war

CAIRO: Israeli strikes targeted the vicinity of Syria’s Damascus, Hama and Daraa countryside late on Friday, Syrian state news agency SANA reported.
The strikes on Damascus countryside killed one civilian and injured four others in Hama, SANA added.
Israel’s repeated strikes on Syria act as a warning to the new Islamist rulers in Damascus, which Israel views as a potential threat on its border.
The Israeli army confirmed the strikes on Syria on Friday, saying it targeted “a military site, anti-aircraft cannons, and surface-to-air missile infrastructure.”
The Israeli army has previously said it targeted Syria’s military infrastructure, including headquarters and sites containing weapons and equipment, since mainly Sunni Muslim Islamist fighters toppled President Bashar Assad in December.
Earlier on Friday, Israel bombed an area near the presidential palace in Damascus, in its clearest warning yet to Syria’s new Islamist-led authorities of its readiness to ramp up military action, which has included strikes it said were in support of the country’s Druze minority.
Israel bombed Syria frequently when the country was governed by Assad, targeting a foothold established by his ally Iran during the civil war.

 


Sudan’s Rapid Support Forces claims to have seized strategic western town

Updated 02 May 2025
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Sudan’s Rapid Support Forces claims to have seized strategic western town

  • RSF paramilitaries say they took key town of Al Nahud in West Kordofan state
  • Area is home to the headquarters of the 18th Infantry Brigade

CAIRO: Sudan’s notorious paramilitary group claimed a “sweeping victory” Friday saying it took control of the key town of Al Nahud in West Kordofan state in a fight that intensified a day earlier.
A victory there by the Rapid Support Forces, or RSF, would mark a strategic loss for Sudan’s military in its war with the paramilitary force as the territory is home to the headquarters of the 18th Infantry Brigade.
The Sudanese army didn’t immediately comment on its social media channels on whether it lost Al Nahud to its rival.
Sudan’s Culture and Information Minister Khalid Ali Aleisir said on his Facebook account on Friday the RSF committed crimes against defenseless citizens in the town, looting their properties and destroying public facilities.
The RSF said on its Telegram channel Friday that it destroyed vehicles belonging to the army and seized their weapons and ammunition during the battle for Al Nahud. The paramilitary group also claimed that it managed to secure the city’s facilities and markets after defeating the army.
The war erupted on April 15, 2023, with pitched battles between the military and the RSF in the streets of the capital Khartoum that quickly spread to other parts of the country.
RSF attacks in Al Nahud have killed more than 300 unarmed civilians, the Preliminary Committee of Sudan Doctors’ Trade Union said on Facebook on Friday. The Associated Press couldn’t independently verify that figure.
The Resistance Committees of Al Nahud condemned the RSF attacks, which it said began Thursday morning.
“They invaded the city, stormed residential neighborhoods, terrorized unarmed civilians, and committed cold-blooded murders against innocent civilians whose only crime was to cling to their dignity and refuse to leave their homes to the machine of killing and terror,” the Resistance Committees said Thursday on Facebook.
An army loss of Al Nahud would impact its operational capabilities in Northern Kordofan state, according to the Sudan War Monitor, an open source collaborative project that has been documenting the two-year-war. Al Nahud is a strategic town because it’s located along a main road that the army could use to advance into the Darfur region, which the RSF mostly controls.
Al Nahud also shelters displaced people fleeing from Al-Obeid, Umm Kadada, Khartoum and El-Fasher — the provincial capital of North Darfur province, according to the Darfur Victims Support Organization.
Meanwhile, in North Darfur, the fighting has killed at least 542 people in the last three weeks, though the actual death toll is likely higher, according to UN Human Rights Chief Volker Türk. This figure includes the recent RSF attacks on El Fasher and Abu Shouk displacement camp, which killed at least 40 civilians.
“The horror unfolding in Sudan knows no bounds,” said Türk i n a statement on Thursday.
Türk also mentioned “extremely disturbing” reports of extrajudicial killings committed by RSF, with at least 30 men in civilian clothing executed by the paramilitary fighters in Al Salha in southern Omdurman.
“I have personally alerted both leaders of the RSF and SAF to the catastrophic human rights consequences of this war. These harrowing consequences are a daily, lived reality for millions of Sudanese. It is well past time for this conflict to stop,” said Türk.
The war in Sudan has killed at least 20,000 people, but the real toll is probably far higher. Nearly 13 million people have fled their homes, 4 million of them streaming into neighboring countries.
Half the population of 50 million faces hunger. The World Food Program has confirmed famine in 10 locations and warns it could spread further, putting millions at risk of starvation.


Tunisia court jails former officials including former PM Larayedh

Updated 02 May 2025
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Tunisia court jails former officials including former PM Larayedh

  • The sentences are for 18 to 36 years, and apply to eight people

TUNIS: A Tunisian court on Friday handed down lengthy prison sentences against former officials, including former Prime Minister Ali Larayedh, a senior figure in the opposition Ennahda party, on charges of facilitating the departure of militants to Syria over the past decade.
TAP state news agency quoted a judicial official as saying that the sentences are for 18 to 36 years, and apply to eight people.


West Bank residents losing hope 100 days into military assault

Updated 02 May 2025
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West Bank residents losing hope 100 days into military assault

  • Israel’s military in late February deployed tanks in Jenin for the first time in the West Bank since the end of the second intifada

JENIN: On a torn-up road near the refugee camp where she once lived, Saja Bawaqneh said she struggled to find hope 100 days after an Israeli offensive in the occupied West Bank forced her to flee.
Tens of thousands of Palestinians have been displaced in the north of the territory since Israel began a major “anti-terrorist operation” dubbed “Iron Wall” on Jan. 21.
Bawaqneh said life was challenging and uncertain since she was forced to leave Jenin refugee camp — one of three targeted by the offensive, along with Tulkarm and Nur Shams.
“We try to hold on to hope, but unfortunately, reality offers none,” she said.
“Nothing is clear in Jenin camp even after 100 days — we still don’t know whether we will return to our homes, or whether those homes have been damaged or destroyed.”
Bawaqneh said residents were banned from entering the camp and that “no one knows ... what happened inside.”
Israel’s military in late February deployed tanks in Jenin for the first time in the West Bank since the end of the second intifada.
In early March, it said it had expanded its offensive to more city areas.
AFP footage this week showed power lines dangling above Jenin’s streets blocked with barriers made of churned-up earth.
Wastewater pooled in the road outside the Jenin Governmental Hospital.
Farha Abu Al-Hija, a member of the Popular Committee for Services in Jenin camp, said families living in the vicinity of the camp were being removed by Israeli forces daily.
“A hundred days have passed like a hundred years for the displaced people of Jenin camp,” she said.
“Their situation is dire, the conditions are harsh, and they are enduring pain unlike anything they have ever known.”
Medical charity Doctors Without Borders in March denounced the “extremely precarious” situation of Palestinians displaced by the military assault, saying they were going “without proper shelter, essential services, and access to health care.”
It said the scale of forced displacement and destruction of camps “has not been seen in decades” in the West Bank.
The UN says about 40,000 residents have been displaced since Jan. 21.
Israeli Defense Minister Israel Katz has said the offensive would last several months and ordered troops to stop residents from returning.
Israeli forces put up barriers at several entrances of the Jenin camp in late April, AFP footage showed.
The Israeli offensive began two days after a truce came into effect in the Gaza Strip between the Israeli military and Gaza’s Hamas rulers.
Two months later, that truce collapsed and Israel resumed its offensive in Gaza, a Palestinian territory separate from the West Bank.
Since the Gaza war began in October 2023, violence has soared in the West Bank.
Israeli troops or settlers have killed at least 925 Palestinians in the territory since then, according to the Ramallah-based Health Ministry.