Iraq Recovers Over $25 Million in Misappropriated Funds, Pursues Assets in Five Countries

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Iraqi flag, Ministry of Justice logo, and U.S. dollars.

The Iraqi Ministry of Justice has announced the recovery of more than $25 million in misappropriated Iraqi funds over the past two years, while legal proceedings continue in five countries to recover assets, including real estate and bank accounts, transferred abroad.

The ministry said Iraq has secured a series of legal victories in international courts and succeeded in lifting freezes imposed on millions of dollars in Iraqi assets.

Ministry of Justice spokesperson Ahmed Laibi told Iraq's State Media (INA) that efforts to recover funds held overseas are being carried out in coordination with the Federal Integrity Commission through legal and judicial channels under international agreements. He noted that the recovery process is complex and can take several years to complete.

Laibi said one of the most significant cases concluded in Iraq's favour involved a lawsuit filed in Jordan in 2010 by the Trust International, which sought $53 million relating to barter contracts with companies affiliated with the Ministry of Industry and Minerals.

He explained that a Jordanian court ruled in 2015 that the Iraqi government and the ministry were jointly liable for the payment, including interest. However, subsequent legal proceedings overturned all seizure orders imposed on Iraqi assets in Jordan, effectively nullifying the ruling.

He added that the Trust International later brought the case before U.S. courts, but the claim was dismissed on the grounds of sovereign immunity. The decision was subsequently upheld by the U.S. Court of Appeals, making the ruling final in Iraq's favour.

Laibi said that during 2025 and 2026, Iraq recovered more than $3 million from the account of the Iraqi Embassy in Beirut. The funds formed part of money embezzled from the Baghdad Municipality that had been frozen in Lebanese banks.

He also said Iraqi authorities had secured court rulings enabling the recovery of more than 332 million Iraqi dinars from a former head of the Stock and Bond Exchange Authority, as well as the recovery of more than $20.48 million for the Trade Bank of Iraq after an Iraqi judgment was recognised and enforced in Lebanon.

In addition, Laibi said a Jordanian court had issued a ruling enabling Iraq to recover more than $1.706 billion from a convicted fugitive, while enforcement proceedings against the individual's frozen assets remain ongoing.

He noted that recovering assets through international legal channels typically takes between two and seven years, depending on the complexity of the evidence required and differences between national legal systems.



PUKMEDIA