Iraqi Justice Ministry Recovers Over $25 Million in Stolen Funds Within Two Years

The Ministry of Justice announced on Saturday the recovery of over $25 million in stolen Iraqi funds over a two-year period. The ministry revealed extensive judicial actions in five countries aimed at reclaiming smuggled real estate and bank accounts, while simultaneously confirming its success in winning international legal battles that resulted in the lifting of seizures worth millions of dollars. The ministry's spokesperson, Ahmed Laibi, stated to the official news agency that work is underway in coordination with the Federal Commission of Integrity to retrieve stolen Iraqi funds abroad. These efforts rely on legal and judicial pathways based on international agreements, noting that the recovery process is complex and can take many years. Laibi clarified that the recovery mechanism is based on the United Nations Convention Against Corruption and bilateral memorandums of understanding. Files are transferred from the Federal Commission of Integrity after seizure procedures are completed, followed by coordination with affected parties to provide the ministry with necessary legal requirements, primarily judicial decisions that have acquired finality. He added that the procedures involve filing lawsuits to grant Iraqi court judgments executory force in the relevant countries, then enforcing them on movable and immovable assets and returning them to Iraq. He indicated that legal follow-up is conducted by commissioned lawyers abroad, while diplomatic coordination falls outside the ministry's purview. The prominent countries involved in these efforts include Jordan, Lebanon, Kuwait, Bulgaria, and Oman. Laibi highlighted that one of the most significant cases concluded in Iraq's favor was the lawsuit filed by "Trust for World Trade" in 2010 before Jordanian courts, demanding $53 million related to barter contracts with companies affiliated with the Ministry of Industry and Minerals. He explained that the court had issued a ruling in 2015 obliging the ministry and the Iraqi government to jointly pay the amount with interest. He reported that subsequent procedures led to the cancellation of all seizures imposed on Iraqi funds in Jordan, effectively nullifying the enforcement of the decision. He added that the institution filed a similar lawsuit before American courts, but the U.S. judiciary rejected the claim based on the principle of sovereign immunity, a decision upheld by the appeals court, making the judgment final in Iraq's favor. Laibi affirmed that Iraq managed, during 2025 and 2026, to recover over $3 million deposited into the account of the Embassy of the Republic of Iraq in Beirut, which constitutes part of the embezzled Baghdad Municipality funds seized in Lebanese banks. Other judicial decisions were also issued in Iraq's favor, including the recovery of over 332 million Iraqi dinars from a former director of the Stock and Securities Exchange Commission, in addition to the recovery of $20,487,308,000 for the Trade Bank of Iraq after the Iraqi judgment was granted executory force in Lebanon. He continued: "Another decision was issued to recover approximately $1.706 billion from an escaped convict in Jordan, with enforcement procedures on his seized assets ongoing." He pointed out that the recovery period typically ranges between two and seven years for a single file due to the complexities of legal proof and differing legislations between countries. The spokesperson noted that the main challenges involve the necessity of proving the crime of corruption with a final judicial ruling within Iraq, in addition to some countries requiring bilateral agreements or detailed final judgments for cooperation. He further explained technical challenges related to disguising funds under the names of shell companies or other individuals. He clarified that tracing and tracking funds falls within the jurisdiction of the Commission of Integrity, while the Ministry of Justice's role begins after the funds are identified and officially seized. Legal procedures pass through two stages: commencing with the appointment of a foreign lawyer to file a lawsuit to grant Iraqi judgments executory force, and concluding with monitoring enforcement and transferring the recovered funds to the state treasury in accordance with applicable laws. He added that some files, including those related to the "Dawn Charge" operations, are still under investigation by judicial authorities.