ERBIL, Kurdistan Region of Iraq – A court in Baghdad on Monday announced the recovery of two billion Iraqi dinars (over 1.5 million dollars) in a financial fraud case involving two currency exchange companies.

“The Second Karkh Investigative Court was able to recover two billion Iraqi dinars from two companies that violated the law to obtain the difference in the dollar exchange rate through fraudulent money transfers outside the country,” read a statement from the Iraqi judiciary.

The amount was recovered through “extensive efforts” of relevant authorities, according to the statement. The judiciary stressed that other companies that “follow illegal methods to obtain large profits” will also be subjected to legal action.

In May, the court announced the recovery of 11 billion Iraqi dinars (around 7.5 million US dollars) in a similar case.

A discrepancy between the value of the US dollar as set by the Central Bank of Iraq (CBI) compared to its value in the local currency markets has been exploited for years by individuals and companies taking advantage of the difference, despite repeated government efforts to address these schemes.

Those taking advantage of this discrepancy often use multiple bank-issued cards to exchange and withdraw their Iraqi dinars in US dollars in foreign countries at the CBI’s rate of 1,320 dinars per one USD before selling it upon returning to Iraq in the currency markets at a markup for a quick profit.