Iraq and its allies and drying financing Daesh

by **Ponee** Sun Nov 20, 2016 10:00 am

Classified as political and economic crises that beset Iraq as the harshest on the level of countries in the region for more than 13 years after the invasion of the US territory in 2003, and the form of terrorism, the first Trinity, which has plagued the country's stability, and to stop an obstacle to any political stability or economic, and reached the peak of this scourge after that dominated state regulation (Daesh) on the city of Mosul in June 2014, and made to isolate them from the rest of Iraq.

Since more than two years Iraq tried with all his allies to cooperate to expel this organization and strangle him, but the economic conditions of Iraq formed another obstacle in the face of these challenges, and the financial corruption within the state institutions of the biggest obstacles, so it was necessary to be a confrontation on two fronts; the home front (within the framework of the Iraqi government and control of the institutions and parties within the territory of Iraq), the foreign front (cooperation with allied nations to confront terrorism and dry the financial activities and others), was for Iraq to enter into bilateral and multilateral agreements to get rid of this terrorism, which he introduced in a severe economic crisis in more than a two years at least.

In this context indicated the US embassy in Iraq, the bilateral agreement (US-Iraqi) to counter terrorism organization "Daesh" and drying the financial headwaters and all economic activities and sources of funding, on the other hand who finance regulation or control deal with him, noting that the organization is going through a difficult financial situation of confound his calculations could undermine its existence the short and medium term.

Daesh in trouble

Information indicates that the state regulation "Daesh" are suffering more than ever from a severe economic crisis, squandered its efforts and its ability to withstand any confrontation, not to mention the international restrictions on its resources and striking vital sites in areas controlled by that formed the main source of funding for himself and his operations since the more than two years.

In a new development in this context stressed the chief financial officer at the US Embassy in Iraq, John Sullivan, said the cooperation between "Washington and Baghdad to stop the financing Daesh agreement made great strides, and that the organization, which reproduced mafia-style passing financial crisis undermined preparations for the battle of Mosul and Stnhia in its current form in the event of loss City".

It has already indicated sources and reports from the city of Mosul that al Daesh now depends on the imposition of financial penalties because of the financial hardship experienced by, and replace sanctions financial fines to get the money ready to face the ambient conditions, particularly liberalization of Mosul, the repercussions of the future. " According to observers, this may cause financial distress in the drained and Andtharh more quickly.

The earlier report said the newspaper "The Independent" British "The Daesh" fighters were forced to cut salaries in half because of the financial crisis experienced by the organization, after the Allied bombing oil sites important economic centers. In addition to seeking Daesh in Nineveh province, at the current stage to overcome the financial dogged dependent on reducing the so-called sponsorship program for the families of his supporters in half because of a severe financial crisis experienced by the organization after the loss of most of the sources of financial funding.

Reports said that the organization has a lot of financial revenues after fallen from eighty million dollars to fifty-six million dollars in March, after it was destroyed a lot of regulation fields in Syria and Iraq because of aerial bombardments.

In February, in February 2016, the international coalition forces destroyed the Iraqi Central Bank city branch of the building, along with other banks, namely: building the Land Bank branch, and the building of a branch of the Rasheed Bank and the Zakat Chamber of the organization Hnak.otrajat well as the financial resources of the organization in Iraq and Syria. According to a report published by the newspaper "daily Telegraph" British, in April 2016, the organization loses "Daesh" about 30% of its income following the shrinking territory controlled by the size, and thus the loss of revenues from taxes that were imposed in these areas.

Dollar control

Agreement also is the first of its kind between the Federal Reserve and the Treasury Department on the one hand, and the Central Bank of Iraq, on the other hand to monitor the dollar shipments and ensure the prevention of the arrival of these funds to illicit destinations, it is successfully applied, a turning point in this file.

"The Central Bank of Iraq and through close cooperation with the US side put a black list to prevent funds from reaching the territory controlled by Daesh, and has more than 150 companies today." Among the most important achievements of the Convention "dramatically reduce the dollar shipments to Iraq and replace dinars."

And here point out that the Fed and the US Department of the Treasury last year, made the decision to temporarily halt the flow of billions of dollars to the Central Bank of Iraq, and that the growing concern that the currency may end up in Iranian banks, and perhaps being funneled to militants organize Daesh, where being finance officials Americans are practical world track to keep the dollar from falling into the hands of the United States designated by "enemies" who can use it to finance their activities.

He adds Sullivan, he said that since the year before the signing of the agreement was "militants Daesh deal in dollars, and this stopped today," noting that "the senior leadership of the organization arrested in dollars", and spoke about the financial crisis afflicting Daesh, "and added that" the ordinary armed salary fell more than 50 percent, as well as to their dealings Dinars prevents them from making international transactions. " He pointed out that "Iraq was one of the countries that buy the dollar for years and there are a radical change today."

John Sullivan said that "The organization was formerly dependent on oil prices and after the decline began trying to swap oil with goods or services." He revealed that "the campaign against Mosul found a lot of cash dugout."

Here Nord reported informed sources that the organization gets lost on the hard currency through the sale of commodities produced in factories controlled by, the local distributors in dollars but pays wages in dinars to thousands of fighters and public officials.

Earlier reports revealed that the organization win up to 20 percent under the preferential currency imposed, which raise the price of the dollar when exchanged for smaller denominations of the dinar rate.

With regard to the central bank Sullivan has praised the efforts of the bank in the reform, noting that he has done during the year more than what has been achieved in the past 13 years. " He added that "Washington and Baghdad will exchange intelligence, financial, security information required to stop for Daesh transfers."

US officials have insisted on tighter controls and exchange information on how they are dollars distributed to financial firms in Iraq, according to US officials and Iraqis.

In an article published in the Washington Institute for Near East Policy speech Daniel Glaser assistant US Treasury secretary for terrorist financing at the "Office of Terrorism and Financial Intelligence": "But is the main concern in Iraq in exploiting" Daesh "to exchange offices that approximately edition 1900 Office, the number of huge increases the difficulty of organizing effectively. In the long run, Iraq needs to reduce the sector to reduce the number of exchange offices to a level that can be monitored to a reasonable extent. The challenges inherent in the short term mainly includes actions to be taken at the level of the labor exchange offices within the territory of the organization. Central Bank of Iraq issued a regulation public that included more than a hundred similar institution also developed the Treasury activist arrangements for the exchange of information with Iraqi officials in order to warn them of any exciting exchange offices suspicions. The entities can be added to this list or removed when it was liberated territories. And Financial institutions around the world refer to this list to avoid doing any business with any exchange office is included on the blacklist. So far, the central bank to prevent these offices to have access to millions of dollars, in a clear sign of Iraq's commitment to this issue. "

In this context, the Central Bank of Iraq has taken a decision to deny three and 99 private banking company from entering sell the currency window, for violating the laws and regulations on the purchase and sale of foreign currency banks. It is a positive step to stop the extended corruption and access to this sensitive institution.The central bank also took steps to improve the financial system laws in Iraq was adopted laws to combat money laundering and combating the financing of terrorism and the development of systems to be applied.

In conclusion, it must be noted that the Iraq war and its allies against terrorism, and specifically regulate Daesh is not an easy task, because these organizations are owned by the expertise to deal with the strategies, so it is necessary to besiege its financial resources and sources of funding and their economic activities illegal. Iraq today is in need of an international coming together to eradicate the sources of terrorism and draining its resources, not to mention the need for internal controls to eliminate corruption, which parallels the terrorism in its effect on the stability of the country, not to mention the follow-up to the abuses that take place in the Iraqi state institutions, and to support the Iraqi Central Bank's efforts, which is the financial institution the most important in Iraq, a move that will protect Iraq's resources and contribute to bail him out of the clutches of corruption and terrorism weary over the past years.

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