Government plan to restructure and reduce the number of banks
The Iraqi government is accelerating its steps to restructure the banking sector, as part of a reform plan that extends over the next two years, aimed at building a banking system more integrated with the global financial system, coinciding with the resumption by the United States of dollar shipments to Iraq after a hiatus of several months.
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The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, said in an interview followed by (Al-Mada) that the government is currently implementing a roadmap to reform the banking sector in cooperation with international auditing firms, expecting that the next 24 months will witness a major transformation in the sector’s structure.
He explained that the plan includes reducing the number of banks in exchange for increasing their capital, expanding their relationships with global banks, and increasing the number of correspondent banks, considering that these indicators reflect progress in the path of financial reform.
Saleh added that Iraq is moving towards a transition from "geopolitical" to "geoeconomic" status, a transformation that requires a banking system capable of financing economic activity in accordance with governance and transparency standards, after years of the sector being affected by political conditions that hindered its integration into the international financial system.
He pointed out that the restructuring includes strengthening financial compliance and preventing the misuse of funds for purposes other than economic ones, in line with the requirements for combating money laundering and terrorist financing, noting that Iraq seeks to move from the grey list to the white list by adhering to international standards.
Saleh confirmed that the reform program includes merging a number of local banks, liquidating a limited number of them, involving international banks, and adopting international auditing and accounting systems, which will enhance the credit rating, reduce risks, and raise the efficiency of liquidity management.
He explained that the presence of experts from the US Treasury Department and international institutions comes within the framework of technical cooperation to develop the banking sector, and does not affect national sovereignty, stressing that building a transparent banking system is a prerequisite for improving the investment environment and attracting capital.
In a related development, the New York Times reported, in a report followed by (Al-Mada), that the United States has resumed dollar shipments to Iraq after suspending them for months, which was confirmed by the spokesman for the Prime Minister, Haider al-Abudi, along with the financial advisor, Mazhar Muhammad Salih.
The flow of dollars into Iraq is subject to strict monitoring under mechanisms overseen by the US Federal Reserve, as part of measures aimed at ensuring transparency in the movement of funds and preventing their use in money laundering operations or their access to entities subject to sanctions, while the Central Bank of Iraq relies on these transfers to meet market needs and finance import operations.
Joint team and real-time data exchange
The Central Bank and the Integrity Commission are taking action to close "money laundering channels" – statement
The Governor of the Central Bank of Iraq, Nizar Nasser Hussein, and the Head of the Federal Integrity Commission, Mohammed Ali Al-Lami, agreed today, Thursday (July 2, 2026), to put in place rapid coordination mechanisms to dry up the avenues for smuggling money by activating proactive monitoring and exchanging immediate data.
The meeting, which took place at the bank's headquarters and was attended by both sides on the occasion of the new governor assuming his position, witnessed an in-depth discussion of the files of protecting public funds, where it was decided to form a joint coordination working group to close the legal and procedural gaps, and to pursue illegal proceeds to recover them in accordance with the legal frameworks.
The Governor of the Central Bank of Iraq, Mr. Nizar Nasser Hussein, received at the bank’s headquarters the Head of the Federal Integrity Commission, Dr. Muhammad Ali Al-Lami, who offered his congratulations and blessings to His Excellency on the occasion of his assuming his new position, wishing him success in managing the country’s monetary policy.
The meeting witnessed an in-depth discussion of a number of vital files of common interest, where both sides stressed the importance of institutional integration between the Central Bank and regulatory bodies to protect public funds and enhance the environment of integrity and transparency in all state institutions.
In a strategic move to enhance financial security, the head of the Integrity Commission and the governor of the Central Bank agreed to strengthen joint coordination mechanisms with the aim of drying up avenues for money smuggling and combating the challenges facing the financial system, through activating proactive oversight and exchanging real-time data, which represents a fundamental pillar in pursuing corruption crimes, and tracking smuggled funds and illicit proceeds to recover them in accordance with legal frameworks.
At the conclusion of the meeting, both parties emphasized the need for the swift implementation of the joint agreements and the formation of a coordinating working group to ensure that any legal and procedural loopholes that could be exploited in financial transactions are addressed.
The Foreign Minister meets with a select group of Iraqis in Portugal to discuss their situation.
Foreign Minister Fuad Hussein met on Thursday with a group of prominent members of the Iraqi community residing in Portugal, as part of the Ministry of Foreign Affairs' commitment to strengthening ties with Iraqi expatriates and leveraging their expertise and capabilities to support national development.
In a statement received by Mawazin News, the Ministry said, "During the meeting, the Minister reviewed the overall political, economic, and security developments in Iraq, as well as the government's efforts to consolidate security and stability, accelerate development, and enhance Iraq's regional and international relations in a way that serves its supreme national interests."
Fuad Hussein emphasized the vital role played by Iraqi communities abroad as a bridge for cultural, civilizational, and economic exchange between Iraq and the rest of the world. He stressed the importance of utilizing the skills and expertise of Iraqis living abroad and employing them to contribute to development, reconstruction, and investment plans in Iraq.
The Minister also listened to the views and suggestions of members of the Iraqi community, who outlined the most significant challenges they face. They also presented a number of ideas and initiatives aimed at strengthening communication with Iraqi institutions and activating the role of expatriate communities in supporting development efforts and serving Iraqis both at home and abroad.
The Minister reiterated the Ministry of Foreign Affairs' commitment to maintaining contact with members of the Iraqi diaspora worldwide and working to improve the services provided to them, thereby strengthening their connection to their homeland and reflecting a positive and civilized image of Iraq internationally.
Diversifying the Iraqi economy: A historic opportunity or a project that clashes with old obstacles?
Economic reform is one of the most prominent challenges facing Iraq, given the continued heavy reliance on oil revenues and the direct impact of fluctuations in global energy prices.
Conversely, there are increasing calls to adopt economic policies based on diversifying income sources, encouraging investment, and strengthening the role of the private sector, which would contribute to building a more stable economy capable of facing crises. With the current government adopting a package of economic plans and reforms, a question arises about its ability to translate this vision into tangible results that reflect on the lives of citizens and the national economy. Economic expert Abbas Al-Shatri confirmed today, Thursday (July 2, 2026), that the current government adopts an economic vision different from the previous government, based on diversifying income sources and reducing dependence on oil revenues, in addition to stimulating investment and developing the economic infrastructure.
Al-Shatri told Baghdad Today that “Iraq is working genuinely to save the Iraqi economy from the accumulated challenges, based on an economic vision that focuses on structural reforms rather than temporary solutions, which distinguishes its approach from many previous governments.”
He explained that "the success of this vision remains contingent on the continued implementation of reforms, the provision of a supportive legislative and administrative environment, as well as combating corruption and strengthening partnership with the private sector, which will positively impact growth rates and job opportunities."
He added that "Iraq possesses great economic potential that qualifies it to achieve a qualitative leap in the coming years if reform policies continue and development projects are implemented according to clear timetables, and the current stage represents an opportunity to lay the foundations for a more diversified and sustainable economy."
For many years, the Iraqi economy has relied mainly on oil revenues, which represent the largest share of the general budget revenues, making it vulnerable to the fluctuations of global markets.
Over the past years, many government programs have been proposed for economic reform and diversification of income sources, but challenges such as corruption, bureaucracy, a weak investment environment, and delays in project implementation have limited the achievement of broad results.
Debts that stretch for years
Temporary liquidity... High deductions and interest rates turn loans into a burden on Iraqi families
Financial and banking expert Nasser Al-Tamimi confirmed on Thursday (July 2, 2026) that the expansion in granting loans during recent years provided financial liquidity to a segment of citizens, but on the other hand, it led to the accumulation of long-term financial obligations on a large number of borrowers, in light of limited income and high living costs.
Al-Tamimi told Baghdad Today that most loans are granted through government and private banks according to controls related to salary, guarantee or collateral, and are distributed between personal loans, housing loans and small business loans, indicating that employees and those with a fixed income are the most likely to benefit from them, while workers in the informal sector and small business owners face difficulties in obtaining financing.
He explained that loans can be an effective tool to stimulate the economy if they are directed towards productive and investment activities that create job opportunities and support the private sector, but a large part of them is used to cover consumer and living expenses, which reduces their positive impact on economic growth.
He added that the high monthly deduction rates from borrowers’ salaries, along with interest and fees on some types of loans, have made them a continuous financial burden on many Iraqi families, especially with the continued inflationary pressures and rising prices of goods and services.
Al-Tamimi stressed that the success of the lending policy requires strengthening oversight of loan granting mechanisms, directing financing towards productive sectors, and providing accessible financing programs for small and medium enterprises, which contributes to transforming loans from a tool for consumption into a means of supporting sustainable economic development.
He stressed that the problem does not lie in the loans themselves, but rather in the way they are managed and directed, noting that achieving a balance between protecting the borrower and ensuring economic feasibility is the basis for the success of any credit policy in Iraq.
In recent years, Iraq has witnessed an expansion in lending programs offered by both public and private banks, aimed at supporting citizens and stimulating economic activity. However, economic experts warn against the increasing reliance on consumer loans at the expense of financing productive projects. This limits their role in achieving economic development and increases the financial burden on families amidst rising inflation and the cost of living.
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Prime Minister's Advisor: Iraq succeeds in securing its first international financing with a sovereign guarantee to support the private sector
The advisor to the Prime Minister, Saleh Mahoud Salman, announced today, Thursday, the completion of the first international financing transaction for an Iraqi private sector project with an Iraqi sovereign guarantee. This was achieved in cooperation with the German institution AKA Ausfuhrkredit-Gesellschaft mbH, and in partnership with the German Commerzbank. This step is considered a significant accomplishment within the government's efforts to support economic reform and enhance the confidence of international financial institutions in the Iraqi economy.
Mahoud explained in a statement received by the Iraqi News Agency (INA) that "this transaction represents the beginning of a new phase in utilizing sovereign guarantees to attract international financing, technology, and investments, which will contribute to enabling the private sector to implement developmental and productive projects with a direct economic impact. It also reflects the success of building partnerships with leading international banking institutions, most notably Commerzbank, one of the most prominent European banks."
He added that "this achievement is the first in a series of development financing projects that are hoped to be implemented during the next phase, which will support the diversification of the national economy, enhance local industry, provide job opportunities, and consolidate partnerships with global financial institutions."
He stressed that “the success of this operation is the result of coordination and cooperation between Iraqi government agencies (the Ministry of Finance and the Trade Bank of Iraq) and international partners,” expressing his appreciation to all Iraqi and international parties that contributed to achieving this accomplishment, which represents a practical step towards expanding financing and investment opportunities in Iraq, and enhancing the presence of international banks and financial institutions in financing Iraqi private sector projects.
Between supporting citizens and accumulating obligations, bank loans face the test of economic viability.
Experts believe that the expansion of banks in granting loans has contributed to providing liquidity, but it has also revealed challenges related to the high monthly deductions and the reliance of a large segment on consumer finance.
Financial and banking expert Nasser Al-Tamimi confirmed that the expansion in granting loans during recent years provided financial liquidity to a segment of citizens, but on the other hand, it led to the accumulation of long-term financial obligations on a large number of borrowers, in light of limited income and high living costs.
Al-Tamimi said that most loans are granted through government and private banks according to controls related to salary, guarantee or sureties, and are distributed between personal loans, housing loans and small business loans.
He then pointed out that employees and those with fixed incomes benefit the most from it, while workers in the informal sector and small business owners face difficulties in obtaining financing.
He explained that loans can be an effective tool to stimulate the economy if they are directed towards productive and investment activities that create job opportunities and support the private sector, but a large part of them is used to cover consumer and living expenses, which reduces their positive impact on economic growth.
He added that the high monthly deduction rates from borrowers’ salaries, along with interest and fees on some types of loans, have made them a continuous financial burden on many Iraqi families, especially with the continued inflationary pressures and rising prices of goods and services.
Loan granting mechanisms
Al-Tamimi stressed that the success of the lending policy requires strengthening oversight of loan granting mechanisms, directing financing towards productive sectors, and providing accessible financing programs for small and medium enterprises, which contributes to transforming loans from a tool for consumption into a means of supporting sustainable economic development.
He stressed that the problem does not lie in the loans themselves, but rather in the way they are managed and directed, noting that achieving a balance between protecting the borrower and ensuring economic feasibility is the basis for the success of any credit policy in Iraq.
In recent years, Iraq has witnessed an expansion in lending programs offered by government and private banks, with the aim of supporting citizens and stimulating economic activity.
However, economic experts warn of the increasing reliance on consumer loans compared to the weak financing of productive projects, which limits their role in achieving economic development and increases the financial burdens on families with rising inflation rates and living costs.
The Central Bank of Iraq: Imports from Türkiye declined by 78%, reducing non-oil revenues in the Kurdistan Region.
he Central Bank of Iraq confirmed, in an official letter addressed to the Iraqi Minister of Finance, the decrease in non-oil revenues for the Kurdistan Region.
The letter, addressed to the office of the Iraqi Minister of Finance on (May 7, 2026), a copy of which was obtained by Rudaw Media Network, referred to a letter from the Ministry of Finance and Economy in the Kurdistan Region dated (May 5, 2026), concerning the decline in non-oil revenues “as a result of the delay in implementing the ASYCUDA system” at the ports belonging to the Kurdistan Region.
According to the book, this prevented “commercial companies operating in the region from obtaining foreign currency at the official exchange rate, which led to a decrease in the commercial activity of those outlets.”
In an analysis of import operations achieved according to the data available to it during the first quarter of 2025 and 2026, the Central Bank revealed a “significant decrease in materials and goods imported from Turkey, amounting to 78%, which indicates a decrease in the level of revenues.”
On June 18, 2026, the Kurdistan Region delegation specializing in customs and the ASYCUDA system signed a memorandum of understanding with officials of the Iraqi General Authority of Customs, comprising 16 points to resolve outstanding issues between them related to the implementation of this system in the Kurdistan Region.
A senior official in the Kurdistan Regional Government told Rudaw that “implementing this agreement requires some procedures and time, but the most important point is enabling Kurdistan Region traders to obtain dollars at the central bank rate.”
Enhancing the investment environment tops the agenda of Al-Zaidy's meeting with businessmen, along with broader support for the private sector.
Prime Minister Ali Faleh al-Zaidi discussed with a group of Iraqi businessmen ways to develop the investment environment and expand the contribution of the private sector to the economic development process.
The Prime Minister’s Media Office stated in a statement that “Prime Minister Ali Faleh Al-Zaidi received a group of Iraqi businessmen in various commercial, industrial and financial sectors.”
According to the statement, the Prime Minister affirmed “the government’s commitment to providing a safe investment environment and supporting all legislation and laws that contribute to achieving the requirements for investment, commercial and industrial success.”
He pointed out that “the private sector is an important partner in development and service projects in Iraq.”
He pointed out that “the government will support his active presence within the framework of its plan included in the ministerial program, which focuses on freeing the economy from the single-system model and employing all capabilities to diversify sources of income and maximize resources.
US resumes dollar transfers to Iraq after months-long suspension
Washington lifts its block on nearly $500M in physical cash shipments after security concerns over Iranian-backed militias eased
The United States has started flying pallets of cash back into Baghdad. After more than two months of blocking physical dollar shipments to Iraq, Washington has reversed course, ending a standoff that had quietly rattled Iraq’s domestic economy and its currency markets.
The first batches of US banknotes arrived in Baghdad in early May 2026, according to Mazhar Mohammed Saleh, the economic advisor to Iraqi Prime Minister Mohammed Shia al-Sudani. The resumption followed what officials described as improved regional airspace conditions and stabilized security.
What happened and why it matters
Here’s some context that makes this story stranger than it sounds: Iraq sells oil, earns dollars, and those dollars sit in an account at the Federal Reserve Bank of New York. When Iraq needs physical cash for its domestic economy, the US arranges air shipments of banknotes from that account back to Baghdad. It’s Iraq’s own money, but it moves through American infrastructure.
In April 2026, the Trump administration blocked a cargo plane from delivering nearly $500 million in banknotes to Iraq. The reason was tied to concerns about Iranian-backed militias and their proximity to Iraqi government operations.
The suspension was part of a broader set of pressure tactics that also included interruptions in security cooperation between the two countries.
During the entire suspension period, electronic dollar transfers used for trade and imports continued without interruption. The freeze applied specifically to physical banknotes, the kind of cash that fuels Iraq’s retail economy.
That distinction matters more than you might think. Iraq’s economy relies heavily on physical dollar deliveries. Citizens use cash dollars for travel, medical treatments abroad, and overseas education expenses. When those shipments stop, it creates a squeeze on the Iraqi dinar as demand for dollars on the street outpaces supply.
The geopolitical chess match
The involvement of multiple US institutions underscores how deeply intertwined the two countries’ financial systems remain. The US Treasury Department, the Federal Reserve Bank of New York, and Iraq’s Central Bank all play roles in what amounts to an elaborate logistics chain for moving paper money across oceans.
Iraq’s Central Bank acts as the primary recipient and distributor of these dollars domestically. When the pipeline gets shut off, the central bank loses one of its key tools for managing exchange rate stability.
Saleh’s public confirmation of the resumption was likely intended to signal to markets and the Iraqi public that the crisis had passed.
What this means for investors
For traditional investors with exposure to Iraqi sovereign debt or companies operating in Iraq’s oil sector, the resumption is straightforwardly positive. A stable dinar means more predictable operating costs and fewer headaches converting revenue.
Cash farms: The shadow economy caught in the American trap
Dr. Thaer Al-Ajeeli is a researcher in political and strategic affairs.
The Second Strategic Report: The Shadow Economy Trap
– A Study of Dismantling the Shadow Economy Infrastructure
and the Doctrine of Drying Up the Financial Source in Iraq
Date: July 1, 2026
⏺️ Strategic Introduction
The political and security landscape in Iraq is witnessing a critical turning point with the launch of the most dangerous phase of Operation Dawn, led by Prime Minister Ali Faleh al-Zaidi. This operation has made the eradication of what are known as "cash farms" a primary and essential objective for reshaping the balance of power and restoring the Iraqi state's monetary sovereignty. The current battle is no longer limited to traditional legal pursuits; it has transformed into a complex intelligence and operational confrontation, orchestrated in coordination with international partners. The Iraqi government has received a strategic intelligence database containing "American aerial coordinates" based on advanced thermal and sensor surveys that have precisely identified the locations of unnatural underground storage sites for billions of dollars in cash, deep within remote farms.
The new security and financial doctrine of the al-Zaidi government is now firmly rooted in the principle of "drying up the source." This stems from the understanding that arresting corrupt figures without seizing their parallel financial arsenals is a futile measure, as the accumulated cash possesses the dynamic ability to infiltrate state institutions and buy loyalties and influence judges. Based on this shared perspective between Baghdad and Washington, the Counter-Terrorism Service (CTS) is preparing to translate this converging data into swift, targeted, and surgical raids aimed at confiscating these hidden coffers and immediately transferring them to the public treasury. This would represent a decisive blow to hybrid financing networks and a definitive crippling of the unchecked arms trade and the deep state.
1️⃣ First axis: The American strategic perspective on "cash farms"
The United States deals with these underground farms and tunnels according to three main dimensions:
◾️A blatant circumvention of the "electronic platform": Washington believes that the corrupt resorting to storing billions in cash is a direct defensive reaction to circumvent the strict electronic auditing system imposed by the Federal Reserve on the currency sale window in Baghdad in 2023 to prevent dollar smuggling.
◾️Establishing a “black and parallel financial system”: This billion-dollar storage is classified as an “outlaw central bank” and is not subject to the international “SWIFT” system, giving deep state forces and factions the ability to provide absolute funding away from digital and satellite surveillance.
◾️A tool to undermine structural reform: The American perspective considers that keeping these funds at large gives the deep state and parallel networks the continued ability to thwart the digital transformation, governance, and automation of customs and border crossings projects that Baghdad seeks to implement.
2️⃣ Second axis: The extent of the danger posed by "cash farms" from the American strategic perspective
US intelligence and financial agencies classify the severity of this phenomenon as a high-risk threat to national security based on the following implications:
◾️Reviving Transnational Terrorist Networks: The greatest danger lies in the impossibility of tracking. Unlike bank transfers or digital currencies that can be traced, physical cash (Paper Currency) stored on farms on the outskirts of Baghdad and the south can be transported overland across porous borders to finance sleeper cells, arms deals on the international black market, and operations to destabilize global shipping and trade routes without being detectable by banking artificial intelligence.
◾️A lifeline for money laundering and illicit empires: From Washington's perspective, these farms have become a "logistical reservoir" for financing regional drug cartels (such as the Captagon trade) and organized crime networks. Iraqi cash is used to purchase gold, real estate, and assets in other countries as an intermediary mechanism for laundering money and reintroducing it into the global financial system as clean funds.
◾️Threatening the integrity of the US dollar as a global currency: Storing tens of billions of dollars in cash (printed in America) inside basements and wet farms and using them in a black shadow economy harms the integrity of the US currency, and makes the Iraqi arena a fertile environment for mixing real dollars with super-fake dollars (Supernotes) produced by international networks hostile to Washington.
3️⃣ Third axis: How does Washington deal with this threat on the ground?
This strategic perspective was reflected in providing direct operational and political support to the government of Prime Minister Ali Faleh al-Zaidi in the "Dawn Charge" campaign:
◾️Intelligence and technological support: Providing the Iraqi side with information maps and an accurate target bank based on advanced thermal and sensor surveys to detect any abnormal movements to transfer the cash mass or bury it underground in isolated tunnels.
◾️Linking compliance to the “Washington visit”: Washington has placed the issue of drying up these farms and holding the involved banking cartel accountable (which was revealed by the confessions of the detained Deputy Minister of Oil, Adnan al-Jumaili) as a basic condition for the success of al-Zaidi’s anticipated visit to the White House in mid-July, to ensure the gradual lifting of financial restrictions on Iraq.
4️⃣ Fourth Axis: Financial Targeting Engineering and Target Bank Management.
Cross-referenced information reveals that Operation Dawn Raid was not based on traditional arrest warrants targeting individuals, but rather on a comprehensive financial and intelligence target bank. This bank relied on tracking the movement of funds, identifying their storage locations, and transforming them into actionable operational targets. This explains the speed, precision, and wide scope of the raids, which aimed to dismantle the infrastructure of the shadow economy before pursuing its key figures. Thus, the confrontation's philosophy shifted from pursuing corrupt individuals to targeting the sources of financial power that enabled them, over the past years, to reproduce their political, security, and economic influence.
◾️“Cash Farms”… The central target of “Operation Dawn”
Prime Minister Ali Faleh al-Zaidi has set what has become known as “cash farms” as a primary and inevitable target for the current campaign, based on the conviction that controlling the sources of funding represents the real entry point to dismantling corruption systems.
▪️ US aerial coordinates: The US envoy provided al-Zaidi with a comprehensive information bank that included precise coordinates that were monitored through advanced thermal and intelligence surveys, which identified abnormal cash storage locations in a number of Iraqi regions, thus providing a highly accurate operational database for targeting these sites.
▪️ Targeted Raids: The Counter Terrorism Service (CTS) relied on available technical and intelligence information to carry out surgical strikes and swift raids targeting irregular money stores, with the aim of confiscating them and transferring them directly to the state treasury, in parallel with judicial and banking procedures for freezing the assets and accounts associated with them.
▪️ The “drying up the source” doctrine: The Zaidi government and its financial team realize that arresting those involved without controlling the “cash farms” will not achieve the strategic goal of the campaign, because the cash mass stored outside the banking system is capable of financing legal defense, buying loyalties, and rebuilding financial and political networks, allowing corruption systems to reproduce themselves again.
◾️The Joint Coordination and Data Management Center (The Fusion Cell):
Information indicates the formation of a small intelligence fusion cell comprising officers from the Counter Terrorism Service (CTS), the National Intelligence Service, along with representatives from the US Treasury Department’s technical team, to serve as the command, analysis, and management center for the financial target bank.
▪️ Closed Operations Room: The cell is responsible for integrating information received from security agencies, banking data, judicial reports, and technical assessments, and converting them into actionable operational objectives.
▪️ Decoding thermal scans: The center receives data from satellites and reconnaissance aircraft equipped with ground-penetrating radar (GPR) and thermal scanning systems, which help identify thermal differences and insulation and cooling patterns associated with underground vaults and bunkers used to store cash blocks.
◾️The implementation mechanism and stages of tactical execution:
The Counter-Terrorism Service (CTS) forces move according to the doctrine of high-speed special forces through three interconnected stages:
1. Phase One – Cyber Lockdown and Jamming: Before the raid begins, an electronic cordon is imposed on the targeted area to cut off communications and prevent the issuance of orders to transfer funds, destroy documents, or request support from nearby armed groups.
2. The second stage – the lightning raid: The executing force relies on the element of surprise and a simultaneous raid by land and air via army aviation, with the aim of taking full control of the site within minutes, and paralyzing the ability of the guards to resist or smuggle money.
3. The third stage – financial and legal verification: The force is accompanied by a specialized engineering team equipped with advanced detection and excavation equipment to locate the basements and cash caches, along with a legal and banking committee from the Integrity Commission and the Central Bank, which takes inventory of the seized funds, documents them with audio and video, and then immediately transfers them via armored carriers and under strict protection to the state treasuries.
Strategic assessment of the axis: These data reveal that "Operation Dawn" targets not so much individuals as it targets the financial infrastructure upon which the shadow economy is built. The real battle is no longer between the state and the corrupt, but between the state and the parallel financial system that, for two decades, has been the primary source for reproducing political influence, buying loyalties, and funding corruption and arms networks. From this perspective, the philosophy of the "drying up the source" doctrine can be understood as a shift from pursuing the consequences of corruption to striking at its financial sources before they transform once again into a political and security force capable of challenging the state.
5️⃣ Fifth axis: Why have “cash farms” become a priority in American doctrine?
The United States does not view “cash farms” merely as repositories of corrupt money, but rather as a financial infrastructure that represents the meeting point between the shadow economy, money laundering, circumventing international sanctions, financing armed groups, and sustaining networks of political influence outside state institutions.
Based on this understanding, American doctrine has evolved in recent years from pursuing individuals to targeting the sources of financial power that enable these networks to persist and reproduce themselves. The corrupt individual can be replaced, but the financial system that funds them, if left intact, will produce new corrupt individuals and new networks of influence.
This is why the “drying up the financial source doctrine” has become a cornerstone of Washington’s approach to Iraq; it believes that controlling cash flows, subjecting them to the formal banking system, and drying up the uncontrolled cash flows represents the shortest path to weakening the shadow economy and reducing the ability of factions and informal networks to finance their activities or influence political decisions.
From this perspective, “cash farms” are no longer just a financial objective, but have become a security and strategic objective, because controlling money ultimately means controlling influence, while losing it leads to the erosion of the ability to buy loyalties, finance networks, and reproduce corruption systems.
Strategic assessment of the axis: In modern American doctrine, money is no longer just a tool that supports conflict, but has become the arena of conflict itself; therefore, the priority is no longer to destroy weapons depots, but to dismantle the financial structure that produces weapons, protects influence, and ensures that the shadow economy remains outside the authority of the state.
6️⃣ Sixth axis: What are the most prominent sanctions and measures that the US Treasury is threatening against Iraqi private banks that are proven to be involved in managing these parallel farms and underground facilities?
The US Treasury Department, in coordination with the Federal Reserve, is moving to impose a package of unprecedented and severe financial sanctions against Iraqi private banks proven to be involved in the "cash farms" case and the money laundering network linked to Adnan al-Jumaili.
According to sources within the joint financial coordination committees between Baghdad and Washington, the most prominent sanctions and measures threatened by the US Treasury consist of four escalating levels:
1. Complete ban from the US financial system (The Blacklist)
This is the most devastating measure for the banks involved, and it includes:
◾️Cutting off access to the “dollar”: Permanently preventing the targeted bank from accessing the Central Bank of Iraq’s foreign currency sales platform, and depriving it of conducting any transfers in US dollars.
◾️Cancellation of correspondent banking: Forcing major global banks to close their correspondent banking accounts with these banks, which means completely isolating them from the international banking system (SWIFT) and being unable to make any external transfers in any currency.
2. Magnitsky Act and Anti-Terrorism Act sanctions:
If investigations prove that the bank's "cash farms" are used to finance armed groups listed on US terrorism lists, the following sanctions will be activated:
◾️Freezing international assets: Seizing and freezing all funds, real estate, and investments belonging to the bank or its board members and major shareholders located in the United States or any Western financial institution.
◾️Listing on (SDN): Placing the bank's management on the "Specially Designated Nationals and Blocked Persons" list, the strictest military and financial list that prohibits any company or individual in the world from dealing with them.
3. Imposing "international trusteeship" and forced forensic audits
before a complete shutdown, the US Treasury may resort to imposing suffocating regulatory conditions on suspected banks:
◾️Third-Party Auditors: Forcing banks to finance and comply with independent American or international financial auditing firms, which are present within the bank's premises to monitor the movement of funds "cent by cent" and verify their final destination.
◾️Exposing secret structures: Obliging the Central Bank of Iraq to end banking secrecy for these institutions, and to reveal the real names of the owners and ultimate beneficiaries, in order to dismantle the fronts of politicians and faction leaders within those banks.
4. The threat of "sovereign sanctions" against the banking sector as a whole is
the biggest threat Washington is using as a pressure tactic against the Iraqi government and the central bank to expedite the "Dawn Charge" raids.
◾️Restricting Iraq's share of cash dollar shipments: The US Treasury is threatening to reduce physical dollar shipments sent by air to Baghdad if the parallel cash economy is not brought under control.
◾️Comprehensive automation requirement: Linking the continuation of financial facilities for Iraq to ending huge cash transactions in the markets, and freezing the licenses of any private bank that refuses to fully engage in the electronic payment system (POS) and digital governance.
7️⃣ Seventh axis: Operational axis: Organizational structure and mechanism for linking and field implementation of (CTS)
To ensure that highly accurate intelligence data is translated into successful surgical strikes, a tight coordination and operational structure was built linking the flow of intelligence to the field movement of elite units:
◾️The Fusion Cell: It includes officers from the Counter Terrorism Service (CTS), Iraqi intelligence, and representatives of the US Treasury to decipher the thermal imaging and ground-penetrating radar (GPR) codes that accurately identify the locations of bunkers and underground passages at depths of up to 5 meters in the Baghdad belt areas and governorates.
◾️Field Tactics and Shock Wall: The Counter Terrorism Service (CTS) relies on a simultaneous surprise attack tactic by land and air via army aviation, with the activation of electronic jamming technology to cut off communications and completely isolate the targeted farm to prevent smuggling or destruction of cash or the summoning of parallel military reinforcements.
◾️Engineering and immediate collection: The raiding force is accompanied by an engineering team equipped with electromagnetic machinery and heavy excavators to determine the exact depth of the tunnels and extract the containers. A banking and legal committee from the Integrity Commission and the Central Bank takes charge of inventorying the amounts (which in the latest operations amounted to one billion dollars in cash and gold) and transferring them immediately via armored carriers to a special independent account in the state treasury.
⏺️ Conclusion: Forward-looking recommendations for protecting operational momentum
First: Strategic Conclusion
A comprehensive analytical reading of the “cash farms” file demonstrates that the “Dawn Charge” campaign led by Prime Minister Ali Faleh al-Zaidi is no longer merely an administrative anti-corruption drive, but rather a battle for national security and monetary sovereignty that transcends borders. The recent field success of the Counter Terrorism Service (CTS) in storming fortified underground bunkers and transferring billions of confiscated funds to the public treasury represents a strategic turning point that has undermined the independent financing capabilities of deep state forces and armed factions. However, draining these black market financial arsenals will inevitably generate fierce defensive and retaliatory reactions from the affected networks, necessitating a shift from the “field shock” phase to one of “institutional and legal fortification” to ensure these forces do not resurface and to safeguard the anticipated strategic visit to the White House in mid-July.
Second: Future recommendations to protect operational momentum (Strategic Recommendations)
To maintain the momentum of the counter-terrorism apparatus and the judicial system, and to ensure that this international financial loophole is closed permanently, we recommend adopting the following policies:
1. Legal and security protection for the judicial system and elite officers
◾️Establishing a "fortified security square": Providing exceptionally strict protection and fully secured residential areas for the judges of the Central Anti-Corruption Criminal Court and their families, and the investigation and arrest officers in the (CTS) apparatus to prevent assassinations or political blackmail.
◾️Confidentiality of operational identities: The publication of any details, names, or military ranks of officers and technical teams involved in farm raids is prohibited to ensure the safety of their families from tribal or militia persecution.
2. The digital institutionalization of the "drying up the source doctrine"
◾️Comprehensive automation and reduction of cash: Obliging all commercial and service sectors (especially gas stations, real estate outlets, and customs) to undergo full digital transformation and adopt the electronic payment system (POS), to eliminate the need for "cash" in the market and make its circulation in large quantities a suspicious crime in itself.
◾️The strict “Where did you get this?” law: Activating legislation that requires owners of luxury real estate and vast farms in the Baghdad belt and the provinces to submit documented financial statements proving the sources of their funds, with immediate confiscation of any assets that do not have legitimate banking cover.
3. Developing international intelligence partnerships with Washington
◾️Continuously updating the coordinate bank: The Fusion Cell continues to operate with the US Treasury and the Federal Reserve, receiving periodic radar surveys (GPR) of security-vulnerable areas to ensure that no new underground storage farms are being established.
◾️Freezing linked foreign accounts: In parallel with confiscating cash inside Iraq, the American side must be provided with the names of the accused and the banks involved in order to freeze their assets and properties abroad, and prevent the use of international investments as a means of laundering what remains of the fugitive cash.
4. Liquidating confiscated funds for the benefit of popular development
◾️The National Sovereignty Fund: Immediately invest the billions recovered from the farms in tangible infrastructure projects (schools, hospitals, road paving, and housing solutions), creating a "popular incubator and community immunity" that supports Prime Minister Al-Zaydi's measures and makes the citizen a partner in protecting the state against corruption networks.
