Iraqi banks funneled money to Iran and its terrorist group allies using a U.S.-created reserve system, according to the results of an investigation by The Wall Street Journal. Following the invasion of Iraq in 2003, the U.S. created a unique system to hold Iraq’s earnings from its oil sales at the New York Federal Reserve, which would subsequently be sent back to the country’s banks in the form of electronic or physical U.S. currency; this process was meant to help track international transactions from Iraq and ensure that they weren’t sent to bad actors such as Iran, according to the WSJ. Rea…