Parliamentary finance committee (Ahmad Chalabi) dossier: Al-Huda Bank and forged import documents in the dollar auction
In 2015 the parliamentary finance committee chaired by Ahmad Chalabi analysed dollar applications, invoices, customs documents and transfer records and alleged in a letter to the Integrity Commission that Al-Huda Bank had fraudulently obtained roughly $6.5bn through the Central Bank of Iraq dollar auction (from 2012 to 2014), with funds sent to Jordan rather than paying for real imports; Chalabi called it "the tip of the iceberg". The Supreme Judicial Council formed an investigative body (November 2015); no public verdict followed. In October 2024 OCCRP, using part of the committee files, reported that over 99% of the money obtained by one bank in one month of 2012 was cleared on apparently fraudulent documents. In January 2024 the US Treasury sanctioned Al-Huda's owner and FinCEN moved to cut the bank off (see Al-Huda Bank: FinCEN Section 311 finding and OFAC designation of its owner (2024)).
- Period
- From 2012 to October 2024
- Sector
- Banking, currency and dollar auctionCentral Bank of Iraq dollar auction, fraudulent import applications
- Kind of case
- Parliamentary inquiry
- Jurisdiction
- Federal Iraq
How the money moved, according to the sources
Banks bought dollars at the Central Bank of Iraq's official rate for customers claiming to import goods, supported by fake invoices from non-existent suppliers; money went to exchange houses and related parties abroad; no goods entered Iraq. The value of the gap between the official and the market rate went to whoever received the dollars.
What happened
No Iraqi court outcome on the 2015 dossier is on record. US action in 2024 targeted the bank and owner.
Open questions
- Full text of the Chalabi committee files (41 pages submitted to the judiciary) and the Supreme Judicial Council committee outcome.
- Which other banks were named, and were any prosecuted?
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Hamad al-Moussawi حمد الموسوي | Owner and board president, Al-Huda Bank | Under sanctions | Designated by OFAC (under Executive Order 13224, which concerns the financing of terrorism) on 29 January 2024; named in the 2015 committee allegations; no Iraqi conviction is on record. | 25 September 2026 |
| Al-Huda Bank مصرف الهدى | Private Iraqi bank | Accused by an official body | Accused by the 2015 parliamentary committee; FinCEN Section 311 action 2024 (see Al-Huda Bank: FinCEN Section 311 finding and OFAC designation of its owner (2024)). | 25 September 2026 |
| Ahmad Chalabi أحمد الجلبي | Chair, parliamentary finance committee (died November 2015) | Not charged as of the date of writing | Author of the referral letter. | 25 September 2026 |
Sources
- OCCRP (Aisha Kehoe Down, Lara Dihmis, Rana Sabbagh, Kevin G. Hall)8 October 2024Press reportTier D
Iraq's Dollar Auction: The "Monster" Funneling Billions to Fraudsters and Militants Through the U.S. Federal Reserve
OriginalOver 99 percent of the money obtained by one bank in a single month in 2012 was cleared based on documents that appeared fraudulent.