Volume 1 - Iraq Watch

Figure 31. Total amounts received in Iraqi bankaccounts from border trade “cash sales” as ofJanuary 2004.Figure 32. Total amounts received in Iraqi bank accountsfrom border trade “cash sales.”CBI’s Role in Tracking Foreign Accounts for IraqThe CBI Investment Department maintained a bookthat contained all foreign accounts opened by thebank, including the numbered or bridge accountsopened in Lebanon and Jordan. The bridge accountsconcealed the fact that foreign companies weremaking payments to Iraq. Under this system, illicitforeign payments appeared to be going to an accountopened in a personal or numbered account. Then theforeign banks immediately transferred proceeds fromthe bridge account to a CBI account.CBI maintained accounts in foreign countries specificallyfor the transfer and distribution of funds to thirdparties. The Investment Department of the CBI didnot conduct normal banking activity after the UnitedNations imposed sanctions on Iraq in 1990 because46its access to overseas accounts, and investmentopportunities in particular were tightly limited andcontrolled. However, the Foreign Accounts section ofthe Investment Department still maintained vigilanceover the CBI accounts that had been frozen aroundthe world in order to track the accrual of interest inthese accounts.• This section also maintained the hidden overseasaccounts in Lebanon and Jordan, which the formerRegime used for earnings from the ten percentcontract kickback scheme and oil surchargespayments. An Investment Department officer ofthe CBI was directly responsible for transferringforeign currency funds from the CBI’s hidden over-