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.


Netanyahu sets out red lines for lasting end to war in Gaza

Updated 11 July 2025
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Netanyahu sets out red lines for lasting end to war in Gaza

  • Says Hamas fighters must first give up their weapons and their hold on the Palestinian territory
  • Failure to reach a deal on Israel’s terms would lead to further conflict, he said

JERUSALEM: Israel is ready to negotiate a lasting deal with Hamas to end the Gaza war when a temporary halt to hostilities begins, Prime Minister Benjamin Netanyahu said on Thursday.
But Netanyahu said the militants must first give up their weapons and their hold on the Palestinian territory, warning that failure to reach a deal on Israel’s terms would lead to further conflict.
His comments as Gaza’s civil defense agency said eight children — killed as they queued for nutritional supplements outside a health clinic — were among 66 people who died in Israeli strikes across the territory Thursday.
The UN children’s agency said one victim was a one-year-old boy who according to his mother had uttered his first words only hours earlier.
Efforts to secure a 60-day halt in the 21-month war have dominated Netanyahu’s talks with US President Donald Trump in Washington.
Indirect negotiations have been taking place between the two sides in Qatar, and the militants have agreed to free 10 of the 20 hostages still alive in captivity since the October 7, 2023 attack which sparked the war.
Sticking points include Hamas’s demand for the free flow of aid into Gaza and Israel’s military withdrawal from the territory. It also wants “real guarantees” on a lasting peace, the group said.
Israeli Foreign Minister Gideon Saar said “progress has been made” but admitted in an interview with Austrian newspaper Die Presse that ironing out “all complex issues” would likely take “a few more days.”
There was no agreement on the number of Palestinian prisoners to be released in exchange for hostages, he told the newspaper.
He said that “initially, eight hostages are to be released, followed by two more on the 50th day” of the 60-day ceasefire. “Additionally, 18 bodies of hostages are to be handed over,” he was quoted as saying.
Saar said a lasting ceasefire would be discussed but added: “There are still major differences, especially regarding the question of how Hamas will be prevented from controlling Gaza after the war.”
He said Israel was ready to grant Hamas leaders safe passage into exile.

‘Fundamental conditions’
Netanyahu, who is under domestic pressure to end the war as military casualties mount, said disarming and neutralizing Hamas were “fundamental conditions” for Israel.
“If this can be achieved through negotiations, great,” he said. “If it cannot be achieved through negotiations within 60 days, we will have to achieve it through other means, by using... the force of our heroic army.”
Senior Hamas official Bassem Naim told AFP that it would not accept “the perpetuation of the occupation of our land” or Palestinians being herded into “isolated enclaves” in the densely populated territory.
The group was particularly opposed to Israeli control over Rafah, on the border with Egypt, and the so-called Morag Corridor between the southern city and Khan Yunis, he added.
Israel announced this year that the army was seizing large areas of Gaza to be incorporated into buffer zones cleared of their inhabitants.
Naim said the group also wanted to end the delivery of aid by a US and Israel-backed group, a system which has seen scores of people killed while seeking food rations.

The Palestinian territory’s civil defense agency said eight children were among 17 people killed in an Israeli strike outside a medical clinic in Deir el-Balah in central Gaza.
“The ground shook beneath our feet and everything around us turned into blood and deafening screams,” said Yousef Al-Aydi, who was in the queue for nutritional supplements when he heard a drone approaching then a blast.
Rabih Torbay, the head of US medical charity Project Hope which runs the facility, called it “a blatant violation of humanitarian law.”
Israel’s military said it had struck a Hamas militant in the city who had infiltrated Israel during the 2023 attack and that it “regrets any harm to uninvolved individuals.”
Overall, the health ministry in Hamas-run Gaza said at least 57,762 Palestinians, most of them civilians, have been killed since the start of the conflict.
Hamas’s October 2023 attack led to the deaths of 1,219 people, most of them civilians, according to an AFP tally based on Israeli figures.
A total of 251 hostages were seized in the attack. Forty-nine are still held in Gaza, including 27 the Israeli military says are dead.
 


British MPs demand full details of US consulting firm’s role in Gaza

Updated 10 July 2025
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British MPs demand full details of US consulting firm’s role in Gaza

  • Boston Consulting Group created models to estimate the costs of relocating Palestinians from the territory, and helped set up controversial Israeli-led aid operation
  • Head of the UK’s Business and Trade Committee writes to company’s CEO demanding information about all work related to the conflict in Gaza

LONDON: A parliamentary committee in the UK has demanded that a major US consulting firm provides full details of its activities related to Gaza, after it emerged the company helped set up a controversial Israeli-led aid operation.

Boston Consulting Group was also asked to provide details of the work it carried out on models to estimate the costs of a widely-condemned Israeli and US plan to relocate Palestinians from Gaza to other countries.

Liam Byrne, chairperson of the Business and Trade Committee, sent a letter requesting the information to BCG’s CEO, Christoph Schweizer, as part of the “scrutiny of the UK’s commercial, political and humanitarian links to the conflict.”

The Financial Times reported on July 4 that the consultancy had built a financial model for the reconstruction of Gaza, which included an estimate of the likely cost of the voluntary relocation of hundreds of thousands of Palestinians.

It also said BCG had helped establish the Gaza Humanitarian Foundation, a US and Israeli-backed aid-distribution program in the territory. Hundreds of Palestinians have been killed trying to access humanitarian supplies at the foundation’s distribution sites since they started operating in May.

In a statement published on Wednesday, Schweizer said the lead partner involved in the work carried out by BCG had been “explicitly told not to do any work related to Gaza reconstruction.”

He added: “The project fell well outside our standards for work that we accept. But the ban was ignored, and the work was secretively conducted anyway.”

He said an internal investigation began in May, two of the partners involved were subsequently “exited” from the company and BCG did not receive any fees for the work.

Byrne, an MP from the UK’s ruling Labour Party, sent a number of questions for BCG to answer about its work on Gaza “in light of the high level of public and parliamentary concern.”

He wrote: “We are aware of recent reports regarding BCG’s engagement with the Gaza Humanitarian Foundation and associated modeling of the costs of relocating Palestinians from Gaza.”

He asked for a “detailed timeline” of BCG’s involvement with the foundation, the scope of its engagement, and the identities of the clients and partners involved. He requested details of other organizations, companies or individuals engaged by BCG in relation to the aid-distribution program, and more details about the type of the “unauthorized” work the company said was carried out.

Byrne also asked for more information about the work related to the development of models for the relocation of Palestinians from Gaza, including the identities of those who commissioned the work and whether any UK-based organizations were involved.

He gave BCG until July 22 to respond, “given the seriousness of these issues and the high level of public interest.”

Nearly 58,000 Palestinians have been killed since October 2023 during Israel’s war on Gaza, including more than 500 in recent weeks as they attempted to obtain food aid from Gaza Humanitarian Foundation distribution sites. The organization, which was set up to replace UN aid-distribution mechanisms, has been condemned by humanitarian chiefs for politicizing aid.

US and Israeli-backed proposals to relocate the Palestinian population of Gaza to other countries, which emerged at the start of the year, were widely condemned by governments in the region and beyond.


RSF attack on shelter in Sudan’s El-Fasher leaves 8 dead, says doctor

Updated 10 July 2025
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RSF attack on shelter in Sudan’s El-Fasher leaves 8 dead, says doctor

  • Since losing control of the capital Khartoum to the army in March, the RSF has stepped up attacks on El-Fasher and its surrounding displacement camps

PORT SUDAN: Sudan’s paramilitary Rapid Support Forces killed eight civilians in an attack on a bunker sheltering dozens in the besieged western city of El-Fasher, a doctor said Thursday.
Nearly all of Darfur, the vast western region of Sudan, remains under RSF control, with communications and media access cut off since the RSF’s war with the army began in April 2023.
The conflict has killed tens of thousands, triggered the world’s largest hunger and displacement crisis, and devastated the northeast African country.
“The RSF bombed a shelter where citizens had taken refuge using a drone, late on Tuesday night,” the doctor told AFP from El-Fasher Teaching Hospital, one of the city’s last functioning health facilities.
They spoke on condition of anonymity for their safety, as health workers have been repeatedly targeted, using a satellite Internet connection to circumvent the communications blackout.
North Darfur state’s capital, El-Fasher, is the only major city in Sudan’s vast Darfur region still outside RSF control, despite a siege that began in May last year.
Since losing control of the capital Khartoum to the army in March, the RSF has stepped up attacks on El-Fasher and its surrounding displacement camps — where famine has already been declared — in an attempt to consolidate its hold on Darfur.
The United Nations has repeatedly warned of the plight of the city’s trapped civilians, who shelter from shelling in makeshift bunkers dug in courtyards and in front of houses.
The bunker bombed on Tuesday had been “sheltering dozens of people,” an eyewitness told AFP.
The city’s resistance committee, one of hundreds of volunteer groups coordinating frontline aid across the country, said El-Fasher was rocked by RSF artillery throughout Wednesday.
El-Fasher’s estimated one million people survive with barely any access to food, water or health care, with critical infrastructure decimated by a lack of maintenance and fuel shortages.
The United Nations said this week that nearly 40 percent of children under five in El-Fasher were suffering from acute malnutrition, including 11 percent with severe acute malnutrition.
Aid sources say an official famine declaration is impossible given the lack of access to data, but mass starvation has all but gripped the city.
Since the war began, the UN estimates 780,000 people have been displaced from El-Fasher and its surrounding displacement camps, including half a million in April and May following a series of brutal RSF attacks.
Of the 10 million people currently internally displaced in Sudan — the world’s largest displacement crisis — nearly 20 percent are in North Darfur.
 


Rights defenders denounce US sanctions on UN expert

Updated 10 July 2025
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Rights defenders denounce US sanctions on UN expert

  • Francesca Albanese accused companies of supporting settlements, Israeli war actions

GENEVA: Human rights defenders rallied on Thursday to support the top UN expert on Palestinian rights, after the US imposed sanctions on her over what it said was unfair criticism of Israel.

Italian lawyer Francesca Albanese serves as special rapporteur on human rights in the occupied Palestinian territories, one of dozens of experts appointed by the 47-member UN Human Rights Council to report on specific global issues.
She has long criticized Israeli treatment of the Palestinians, and this month published a report accusing over 60 companies, including some US firms, of supporting Israeli settlements in the West Bank and military actions in Gaza.
US Secretary of State Marco Rubio announced on Wednesday Albanese would be added to the US sanctions list for work that had prompted what he described as illegitimate prosecutions of Israelis at the International Criminal Court.
UN High Commissioner for Human Rights Volker Turk urged Washington to reverse course.
“Even in the face of fierce disagreement, UN Member States should engage substantively and constructively, rather than resort to punitive measures,” he said.
Juerg Lauber, the Swiss permanent representative to the UN who now holds the rotating presidency of the Human Rights Council, said he regretted the sanctions, and called on states to “refrain from any acts of intimidation or reprisal” against the body’s experts.
Mariana Katzarova, who serves as the special rapporteur for human rights in Russia, said her concern was that other countries would follow the US lead.
“This is totally unacceptable and opens the gates for any other government to do the same,” she said. “It is an attack on UN system as a whole. Member states must stand up and denounce this.”
Russia has rejected Katzarova’s mandate and refused to let her enter the country, but it has so far stopped short of publicly adding her to a sanctions list.
Washington has already imposed sanctions against officials at the International Criminal Court, which has issued arrest warrants against Israeli Prime Minister Benjamin Netanyahu and his former defense minister for suspected war crimes in Gaza. Another court, the International Court of Justice, is hearing a case brought by South Africa that accuses Israel of genocide.
Israel denies that its forces have carried out war crimes or genocide against Palestinians in the war in Gaza, which was precipitated by an attack by Hamas-led fighters in October 2023.
“The United States is working to dismantle the norms and institutions on which survivors of grave abuses rely,” said Liz Evenson, international justice director at Human Rights Watch.
The group’s former head, Kenneth Roth, called the US sanctions an attempt “to deter prosecution of Israeli war crimes and genocide in Gaza.”
The US, once one of the most active members of the Human Rights Council, has disengaged from it under President Donald Trump, alleging an anti-Israel bias.


Sara Netanyahu: the ever-present wife of Israel’s prime minister

Updated 10 July 2025
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Sara Netanyahu: the ever-present wife of Israel’s prime minister

  • Sara Netanyahu has long made headlines, notably for her alleged involvement in the political decisions of her husband
  • She has been questioned in connection with her husband’s ongoing graft trial and was the subject of corruption, fraud and breach of trust investigations

JERUSALEM: Whether dining opposite US President Donald Trump or accompanying her husband on an official Pentagon visit, Sara Netanyahu’s front-row role in Washington this week has sparked fresh questions over her place in Israeli politics.
Prime Minister Benjamin Netanyahu’s third wife and the mother of two of his children, Sara Netanyahu has long made headlines, notably for her alleged involvement in the political decisions of her husband.
“My wife and I...” is a phrase often used by the Israeli premier in his official statements, helping to cement Sara’s position at the forefront of public life.
This week, as the prime minister visited Washington for a series of high-level meetings in which he discussed a potential Gaza ceasefire deal with the US president, his wife was noticeably present.
On Tuesday, she was photographed sitting opposite Trump at an official dinner following a meeting between the two leaders.
Two days later, she appeared next to her husband, as well as US Defense Secretary Pete Hegseth and his wife, Jennifer Rauchet, as they arrived for meetings at the Pentagon.
But speculation had swirled even before the Netanyahus’ departure for Washington.
On the eve of the trip, the prime minister’s office announced the resignation of his spokesman Omer Dostri.
A few hours later, following media reports claiming that his wife had been involved in the decision, another statement was issued denying she had any role.
Sara Netanyahu has been the subject of several investigations, including for corruption, fraud and breach of trust, and has also been questioned in connection with her husband’s ongoing graft trial.
Married to Benjamin Netanyahu since 1991, the 66-year-old is the target of frequent media attacks which are regularly denounced by her husband.
She has been caricatured in satirical programs for her fashion choices or her profession as a child psychologist, which she has often appeared to boast about.
But above all, she has been targeted for her alleged interference in state affairs.
‘Real prime minister’
In a video released in December 2024, Netanyahu denied that his wife was involved in his cabinet appointments or that she was privy to state secrets.
It followed an investigation into Sara Netanyahu aired by Israel’s Channnel 12 which the prime minister slammed as a “witch hunt.”
In 2021, a former senior official said he had seen a contract signed by the Netanyahus stipulating that Sara had a say in the appointment of Israeli security chiefs.
To that claim, the prime minister’s office responded with a brief statement denouncing “a complete lie.” The official lost a libel suit brought against him by the Netanyahus’ lawyer.
And when the prime minister appointed David Zini as the new head of Israel’s Shin Bet security service in May, Israeli journalists once again pointed to the possible influence of Sara Netanyahu, who is thought to be close to Zini’s entourage.
Almost two years since the start of Israel’s war against Hamas in Gaza, Sara Netanyahu seems to have established herself as more indispensable than ever, with some even attributing her with increasing influence on strategic issues.
In May, when Sara Netanyahu corrected the number of living Gaza hostages given by her husband during a recorded meeting with the captives’ families, speculation swirled that she had access to classified information.
Journalist and Netanyahu biographer Ben Caspit went as far as to describe Sara Netanyahu as the “real prime minister.”
“It has become public knowledge. It is an integral part of our lives... we are normalizing the fact that someone has dismantled the leadership of the state in favor of chaotic, family-based management,” Caspit said in an opinion piece published on the website of the Maariv newspaper.
In an interview with US news outlet Fox News on Wednesday, Netanyahu described his wife as a “wonderful partner” and praised her help over the years.