$500 Billion Awaits Return: Iraq Faces A Golden Window To Recover Its Smuggled Funds.
September 10, 2025 Baghdad / Iraq Observer At a time when the Iraqi economy is under increasing pressure due to corruption, waste, and mismanagement, the recovery of smuggled assets stands out as one of the most important legal avenues that can restore a portion of Iraq’s plundered wealth and contribute to alleviating the state’s financial burdens.
hile the value of these funds is estimated at approximately $500 billion,
legal opinions and
judicial sources
confirm that the
path to their recovery is
“legally feasible” and
requires political will and concerted efforts
at both the
local and
international levels.
In this context, legal researcher Ali Al-Tamimi said in an exclusive interview with Iraq Observer,
“There are international agreements in force that allow Iraq to claim these funds,” adding,
“The most prominent of these is the 2005 United Nations Convention against Money Laundering,
which Iraq ratified under Law No. 35 of 2007.” Al-Tamimi explains that
Legal materials supporting Iraqi rights
“Articles 55 and 56 of the international agreement
establish a legal framework
for the recovery of stolen assets located abroad,” noting that
this agreement has been adopted by many countries that have already succeeded in recovering their assets, such as Nigeria, the Philippines, Algeria, and Egypt.
This leaves the way “legally open” for Iraq to recover whatever stolen assets can be recovered.
Al-Tamimi pointed out that
Iraq has a legal right to claim the
massive sums deposited in the US Federal Reserve belonging to the former regime,
estimated at $65 billion. He explained that
Article 28 of the 2008 Iraqi-US Strategic Agreement
authorizes Iraq to
request economic assistance from Washington,
including cooperation in asset recovery cases.
Potential International Support: From ISIS to Guardianship
Al-Tamimi touched on an important international aspect, emphasizing that
Article 50 of the UN Charter allows countries that have fought groups classified under Chapter VII
(such as ISIS)
to request economic assistance from the UN Security Council. He noted that
UN Resolution 2170, issued in 2014,
places ISIS under this classification,
giving Iraq the legal legitimacy to request international financial support in this context.
In a significant warning, Al-Tamimi noted that the
continuation of the
political,
security, and
economic crises in Iraq
could force the country back into Chapter VII of the UN Charter, meaning
it would be subject to partial international guardianship.
This is a situation from which it had previously exited
following the settlement of financial dues to Kuwait,
which amounted to $4.5 billion.
Legal amendments are required
Earlier, Integrity Commission Chairman Mohammed Ali al-Lami
stressed the
need to recover Iraq‘s looted funds.
The Federal Integrity Commission stated in a statement that
“the Chairman of the Board of Directors of the Iraq Asset Recovery Fund, Mohammed Ali Al-Lami,
held a meeting of the Board of Directors of the Iraq Asset Recovery Fund,
during which several topics on the agenda were discussed, including a
review of the files presented to the Fund, and the
importance of
diligent follow-up and
investigation of this information.” He pointed out that
“the Iraq Asset Recovery Fund Law No. (9 of 2012), as amended,
requires some important amendments that the legislative authority should take the initiative to legislate.”
According to the statement, Al-Lami stressed the
“need to exert maximum efforts to recover Iraqi funds looted during the era of the former regime,
in accordance with the current Iraqi Fund Recovery Fund Law,”
urging that “the information received by the fund be given due importance.” Al-Lami pointed out that
“the task of recovering Iraq’s assets
is a national responsibility that
requires the combined efforts of all Iraqis
to participate in, and
to support the relevant authorities
by providing information that helps uncover the
amount of these funds and
their locations.” He explained that
“the Ministry of Foreign Affairs’
acceleration of its procedures in sending the files within the legal deadlines to the relevant authorities
contributes to
accelerating the completion of the files and
culminating in the efforts to recover Iraq’s assets.”
Despite the importance of this issue,
observers believe that the most important step remains the
activation of international diplomatic tools and
official legal action by the Iraqi government
to form specialized teams
in cooperation with the
United Nations and the
countries where the smuggled funds are located.
While the legal aspects
demonstrate that the recovery of smuggled funds is possible and
supported by valid and proven agreements from other countries,
political will and
effective management
remain the key to
success or
failure
in this matter.
https://observeriraq.net/500-مليار-دولار-بانتظار-العودة-العراق-أم/
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