Iraqi tycoon to fight against US sanctions from London base

An Iraqi businessman who is under US sanctions due to allegations of financing Iran's Islamic Revolutionary Guards Corps and its network of militant groups has revealed he is seeking to appeal against the measures.

Ali Ghulam, 42, has British citizenship and lives in a $42 million mansion in London, from where he told The National that he intends to challenge the designation. The US placed him under sanctions in October as part of a package targeting what Washington alleged was the financing of Iran-backed militias and the IRGC.

Mr Ghulam strenuously denies the claims made by the US Treasury. Washington has alleged that parts of Iraq's banking system controlled by Mr Ghulam and others operate a complex scheme to procure US dollars and cycle the funds into laundering operations that rely on counterfeit documents and receipts.

This year, as many as 13 banks were banned from the country's dollar trade after talks between officials from the Central Bank of Iraq, the US Treasury and the Federal Reserve. The banker is also accused of avoiding justice in Iraq by bribing the country's judicial authorities. The US Treasury penalties were imposed under the Specially Designated Global Terrorist sanctions programme.

In response, Mr Ghulam's lawyers said he "denies ever knowingly engaging in any of the activities alleged by the US Treasury" and also "denies having authorised any entity or individual to engage in such activities". Their statement said he was "wholly unclear what the evidential basis is to support the allegations made".

He said he intended to challenge the premise of US designation and resist any spillover effects on his interests in the UK. Mr Ghulam added that "any wider designation in the UK would be similarly misconceived, unjust and oppressive".

Mr Ghulam's lawyers say he has lived in the UK since 2018, along with his wife and their six children. They are all "British citizens and their lives are firmly rooted in the UK", his lawyers added.

"Our client condemns money laundering, sanctions evasion and corruption in all its forms and agrees that the UK must not serve as a safe haven to anyone engaging in those activities," they said. "Our client is adamant that he has never laundered money, evaded sanctions or engaged in corruption."

After reportedly beginning his working life as a flour trader, he established a currency exchange in 2008, then moved into banking. He took control of Middle East Investment Bank in 2014 and also controls Al Ansari Bank and Al Qabidh Bank.

Mr Ghulam started establishing a presence in the UK in about 2012 when he filed as a director at Companies House. At that time, he was already on his way to becoming one of Iraqi's wealthiest people through his banks.

Ali Ghulam lives with his family in a $42 million mansion in London. The National

Militia links

The US alleges Mr Ghulam has given the IRGC's Quds Force a degree of control over his banks. According to Washington, Mr Ghulam has managed the finances of Kataib Hezbollah, an Iran-aligned militia, including investing the fortunes of its highest-ranking leaders outside Iraq.

Kataib Hezbollah is designated as a terrorist organisation by the US. It fought a long-running campaign against American forces in Iraq after 2004. The US has also claimed Mr Ghulam provided financial services to another militia, Asaib Ahl Al Haq. It is also designated as a terrorist organisation by the US.

London life

Visitors to Mr Ghulam's mansion may admire a collection of luxury cars before they arrive at the front door. A Ferrari, Rolls-Royce SUV and BMW SUV parked outside the property are evidence of the wealth amassed through the currency trading carried out by his banks and money exchanges.

Records show Mr Ghulam appears to have paid cash for the eight-bedroom, three-storey mansion, which is in an upmarket area of London. Other large houses line the street.

He bought the house in 2021, three years after moving to London but his connections to the city stretch back nearly a decade before that, The National can reveal. Mr Ghulam can also be linked to a non-descript social housing property in the city, which was used as an address for a business venture with another Iraqi banker.

The UK must not serve as a safe haven to those who launder money, evade sanctions or engage in corruption Ben Cowdock ,

Tran