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FROM THE OFFICE OF PUBLIC AFFAIRS April 15, 2004 Treasury Designates Front Companies, Corrupt 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 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 Lootah Building, Airport Road Al Wasel and Babel – Iraqi Offices Individuals Tarik Nasser S. Al Obaidi AL-HUDA STATE COMPANY FOR RELIGIOUS TOURISM a.k.a. Address AVIATRANS ANSTALT a.k.a. Address LOGARCHEO S.A. a.k.a. Address MIDCO FINANCIAL, S.A. a.k.a. Address MONTANA MANAGEMENT, INC. Address Individuals Adnan S. Hasan Ahmed AL-ARABI TRADING COMPANY Addresses Hai Al-Wahda P.O. Box 2337 AL-BASHAIR TRADING COMPANY 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. Address Individual 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.
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