Federal Authorities Raids 29 Businesses in Investigation into Illegal Wire Transfers to Iraq

Surprise Move Targets Suspected Money Laundering Scheme

In a surprise move, federal agents conducted raids on 29 businesses and individuals across 14 states in the US in early February 2002. The investigation is focused on alleged illegal wire transfers to Iraq, which authorities believe may be part of a larger money laundering scheme.

Raids Target Suspected Illegal Activity

During the searches, law enforcement officials seized documents and records, which are being examined for potential violations of anti-money laundering laws and regulations requiring money services businesses to register with the government. The investigation is also probing whether the transactions bypassed strict US regulations prohibiting direct or indirect financial support to the Iraqi government or its people.

Money Trail Believed to Run Through Jordan

According to sources, the illegal wire transfers were believed to be routed through a bank in Jordan before reaching their intended recipients in Iraq. This alleged money laundering scheme is said to have circumvented US regulations by using third-party banks and individuals not directly linked to the Iraqi government or its people.

Suspicious Activity Reports Aid Investigation

The investigation was greatly aided by Suspicious Activity Reports (SARs), which identified individuals not initially under scrutiny and linked them to businesses already being investigated. This information helped authorities to widen their net and uncover more evidence of illegal activity.

Escalation in Efforts to Combat Illegal Transactions

The raids mark a significant escalation in efforts to combat illegal transactions to Iraq, which has been subject to strict economic sanctions since the 1990-91 Gulf War. The US government has long prohibited financial support to the Iraqi regime, citing concerns over human rights abuses and weapons of mass destruction development.

Call to Action: Report Suspicious Transactions

As the investigation continues, authorities are urging individuals and businesses with knowledge of similar suspicious transactions to come forward and report them to the relevant authorities. If you have information about illegal wire transfers or money laundering schemes, please contact your local law enforcement agency or the Financial Crimes Enforcement Network (FinCEN).