ERBIL, Kurdistan Region - The Iraqi National Security Service (INSS) announced on Sunday that it had dismantled several currency smuggling networks operating across the country, including a group illegally transferring over a million in funds between Baghdad and Sulaimani using bank cards.
Arshad Hakim, spokesperson for the INSS, told Rudaw's Hastyar Qadir on Sunday that intelligence-based operations carried out by the agency’s unit in Diyala province led to the arrest of two suspects involved in a network smuggling money between Baghdad and Sulaimani.
“The group was smuggling funds using Mastercards,” Hakim said, adding that security forces seized Point of Sale (POS) devices and a large number of bank cards prepared for illegal transfers.
The arrests come amid increased Iraqi government efforts to curb foreign currency smuggling and regulate access to US dollars. Earlier in July, the Central Bank of Iraq (CBI) reduced the monthly dollar allocation for adult travelers from $3,000 to $2,000, saying the measure aimed to improve foreign currency management and encourage electronic payments.
The arrests also coincide with ongoing investigations and national efforts to curb corruption, embezzlement, and money laundering in accordance with Iraq's ongoing anti-corruption campaign launched in June, known as Operation Dawn, which has resulted in the arrest of dozens of Iraqi politicians and lawmakers, former officials, and senior government employees, in addition to hundreds of millions of dollars in stolen assets and seized state properties illegally transferred into private ownership.
Under Iraqi regulations, transferring funds abroad through bank cards outside approved channels is considered a form of illicit bulk cash smuggling.
The CBI said at the time that the move was part of efforts to “develop the management of foreign currency sales operations, enhance the efficiency of resource distribution, and align with international banking best practices.”
The INSS said in a statement that its Diyala units acted “based on precise intelligence and continuous field surveillance” and dismantled the network following judicial warrants.
In Kirkuk, security forces also arrested six people accused of operating another currency smuggling network. Authorities seized 251 Mastercards and 252 SIM cards allegedly used to move foreign currency out of Iraq.
The security agency said it also carried out operations in several other provinces targeting financial crimes.
In Nineveh, intelligence units arrested an individual carrying $100,000 in counterfeit currency, while in Baghdad, officers detained a suspect wanted under article 456 of Iraq’s Penal Code for fraud. Authorities seized more than 1.324 billion Iraqi dinars ($1 million) and $256,000 from the suspect.
In Basra, the INSS said it disrupted a scam operation in which suspects allegedly created fake Facebook pages advertising the sale of “frozen dollars” at attractive exchange rates before providing victims with counterfeit bills. Four suspects were arrested with around $10,000 in fake currency, according to the agency.
“All suspects and seized items have been referred to the relevant authorities for legal proceedings,” the INSS said.
The Iraqi government has been under pressure to address dollar shortages and exchange rate pressures, with officials previously warning that some travelers and traders had exploited dollar allocation systems, contributing to demand on the parallel market.
