Press Releases

Treasury Designates Front Companies, Corrupt Officials Controlled by Saddam Hussein’s Regime

(Archived Content)

FROM THE OFFICE OF PUBLIC AFFAIRS

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In a joint effort with the United Kingdom, the U.S. Department of the Treasury today designated a worldwide group of front companies and individuals that were procuring weapons, skimming funds, operating for the Iraqi Intelligence Service, and doing business in support of the fallen Saddam Hussein regime. 

“We are unmasking the financial façade of the former Iraqi regime.  Hussein and his cronies used a global network of agents and businesses to pilfer from the Iraqi people and to underwrite their tyranny,” said Juan Zarate, the Treasury Department’s Deputy Assistant Secretary for Terrorist Financing and Financial Crimes. 

Today’s action is against eight front companies of the former Iraqi regime and five associated individuals.  The United States is submitting the names of these companies and individuals to the United Nations with the recommendation they be listed by the 1518 Committee under U.N. Security Council Resolution (UNSCR) 1483.   Today’s action is taken pursuant to Executive Order 13315.  Three of these front companies and one of the individuals were previously designated by the Treasury Department.

UNSCR 1483 requires U.N. member states to identify, freeze and transfer to the Development Fund for Iraq (DFI) assets of senior officials of the former Iraqi regime and their immediate family members, including entities owned or controlled by them or by persons acting on their behalf.  In addition, assets of the previous Government of Iraq or its state bodies, corporations or agencies located outside of Iraq before May 22, 2003, must also be transferred to the DFI for reconstruction, administration and humanitarian assistance. 

The Department of the Treasury is taking these steps to help the international community identify Iraqi assets connected to the designated entities.  Treasury is also encouraging other countries to undertake independent investigations to identify other Iraqi-related assets, publish similar listings and return identified funds to the DFI.

“The Bush Administration will continue to unravel Saddam’s financial web with the help of our allies and partners.  The world should know that we will not tire in our efforts to hold the Hussein regime accountable for its corruption and to return Iraq’s money to the Iraqi people,” Zarate continued.

The Treasury Department took action today against:

AL-WASEL AND BABEL GENERAL TRADING LLC
Information available to the U.S. indicates Al Wasel and Babel was controlled by, and acted for or on behalf of, senior officials of the former Iraqi regime, including Iraqi Deputy Prime Minister and Finance Minister Hikmat Mizban Ibrahim al-Azzawi.  Al-Azzawi has been named by the United Nations as a senior official of the former Iraq regime on the list established pursuant to UNSCR 1483. 

Much of this information was developed during an investigation by U.S. authorities on Al Wasel and Babel’s attempts to procure a sophisticated surface-to-air missile system for Iraq. 

Other information developed by the U.S. Government indicates Al Wasel and Babel played a key role in the former Iraqi regime’s schemes to obtain illicit kickbacks on goods purchased through the U.N. Oil-for-Food (OFF) Program.

Addresses
Ibrahim Saeed Lootah Building, Al Ramool Street
P.O. Box 10631 & 638
Rashidiya, Dubai
UAE

Lootah Building, Airport Road
Rashidiya, Dubai
UAE

Al Wasel and Babel – Iraqi Offices
Harasiya area, Baghdad
Iraq

Individuals
Hikmat Jarjes Bahnam
a.k.a. Hikmat Gargees
Baghdad, Iraq

Tarik Nasser S. Al Obaidi
a.k.a. Tarik al-‘Ubaydi
a.k.a. Tariq al-‘Ubaydi
Baghdad, Iraq

AL-HUDA STATE COMPANY FOR RELIGIOUS TOURISM
Al-Huda served as a commercial front for the Iraqi Intelligence Service, an agency of the former Iraqi regime.  Al-Huda, which held a monopoly over the provision, transportation and other tourism services to Iranian pilgrims visiting the Shi’ite shrines in Iraq, skimmed lucrative amounts off tour packages and directed the funds to the regime’s coffers.  Estimates show this skimming racked up as much as $500 million each year for the regime.

a.k.a.
Al-Huda for Religious Tourism Company
Al-Hoda State Company for Religious Tourism
Al-Hoda for Religious Tourism Company

Address
Iraq

AVIATRANS ANSTALT
Aviatrans Anstalt was established to manage assets of the former regime and its senior officials.  This Liechtenstein–based company was reportedly the registered owner and manager of a Falcon-50 jet, which was purchased by the former Iraqi regime with Iraqi Air Force funds and used to transport senior Iraqi government officials. 

a.k.a.
Aviatrans Establishment

Address
Ruggell, Liechtenstein

LOGARCHEO S.A.
Logarcheo was established to manage assets of the former regime and its senior officials.  Logarcheo is reportedly the owner and manager of real estate in France that is ultimately owned by Saddam Hussein.

a.k.a.
Locarcheo AG

Address
Chemin du Carmel
1661 Le Paquier-Montbarry
Switzerland

MIDCO FINANCIAL, S.A.
Midco’s president, administrator and authorized signatory Khalaf Al-Dulaymi was also a director of investments for the Iraqi Intelligence Service. 

a.k.a.
Midco Finance, S.A.

Address
Switzerland

MONTANA MANAGEMENT, INC.
Khalaf Al-Dulaymi, also associated with Midco Financial, was a principal of Montana Management, which reportedly owned substantial shares of stock in one or more French firms on behalf of senior officials of the former Iraqi regime.

Address
Panama

Individuals
Khalaf M. M. Al-Dulaymi
a.k.a. Khalaf Al-Dulaimi

Adnan S. Hasan Ahmed
a.k.a. Hasan Ahmed S. Adnan
a.k.a. Ahmed Sultan
Amman, Jordan

AL-ARABI TRADING COMPANY
Al-Arabi is the ultimate holding company for a variety of Iraqi front companies that engaged in military procurement for the former regime.  Al-Arabi owns 99 percent of the UK-incorporated company Technology and Development Group Limited (TDG), which in turn owns TMG Engineering Limited.  TDG and TMG were involved in Iraq’s arms procurement network during the late 1980s.

Addresses
Hai Babil
Lane 11, Distrcit 929
Baghdad, Iraq

Hai Al-Wahda
Lane 15, Area 902
Office 10
Baghdad, Iraq

P.O. Box 2337
Alwiyad
Baghdad, Iraq

AL-BASHAIR TRADING COMPANY
Al-Bashair, directed by Munir Al-Qubaysi, reportedly acted as the largest of Iraq’s arms procurement front companies and was involved in a range of sanctions busting and corruption schemes on behalf of the regime.  Al-Bashair reported directly to the Organization of Military Industrialization, which was responsible for Iraq’s military procurement programs and was headed by former Deputy Prime Minister Abd-al-Tawab Mullah Huwaysh.  Huwaysh has been named by the U.N. as a senior official of the former Iraq regime on the list established pursuant to UNSCR 1483. 

Reporting based on documents removed from Al-Bashair’s headquarters describes a variety of deals involving sham contracts, kickbacks, falsified export documentation and money laundering designed to deceive U.N. inspectors and deliver, among other things, missile components, surveillance equipment and tank barrels to the former Iraqi regime.  The company also allegedly helped seniors officials of the former regime launder and hide Iraqi government funds. 

a.k.a.
Al-Bashaer Trading Company, LTD
Al-Bashir Trading Company, LTD
Al-Basha’ir Trading Company, LTD
Al-Bashaair Trading Company, LTD

Address
Al-Ani Building, Sadoon Street
First Floor
Baghdad Iraq

Individual
Munir Al-Qubaysi
a.k.a. Munir Al-Kubaysi
a.k.a. Muneer Al-Kubaisi
a.k.a. Munir Mamduh Awad
a.k.a. Munir A. Awad
Syria

Midco Financial, Montana Management, Al-Arabi Trading Company and the individual Khalaf Al-Dulaymi were designated by the Treasury Department in the early 1990s as Specially Designated Nationals (SDNs) of Iraq.  The United States is submitting the names to the U.N. today in order to speed the transfer to the DFI of assets that remain in these entities’ names in other jurisdictions.