Recovering corruption proceeds: the recovery department, the Iraq Funds Recovery Fund and return of illicit gain
A sentence in a corruption case does not by itself bring the money back. The legislator therefore created specific recovery tools, some inside the Integrity Commission and some in a separate law. Many people confuse them, assuming that the "Iraq Funds Recovery Fund" pursues all corruption money, although its scope is limited in time. The office of lawyer Ali Barakat in Baghdad separates these tools.
First: the Integrity Commission's recovery department
The seventh paragraph of the tenth article of the Integrity Commission and Illicit Gain Law establishes the "recovery department", headed by a director general holding at least a first university degree in law, responsible for:
- Gathering information and pursuing accused persons wanted by the Commission from outside Iraq.
- Recovering corruption proceeds moved abroad, in cooperation and coordination with the relevant bodies.
The department has two directorates: one for recovering funds and one for recovering accused persons. Its work connects to the Commission's general duty in the seventh paragraph of the third article: taking any necessary and effective action that helps combat corruption.
Second: court-ordered return of illicit gain
The fourth paragraph of article 19 requires the court to order return of the value of illicit gain and sets two important rules:
- A convicted person is not released under the second and third paragraphs of the same article until the fine is discharged and the value of the gain returned.
- Death does not stop the return: the end of the criminal case by death does not prevent enforcement of the order to return the value of illicit gain.
The second rule means that return is a financial obligation separate from personal punishment: the penalty ends with the accused's death, but the order to return the value remains enforceable. The definition of illicit gain includes property a person is shown by a final judgment to have obtained jointly with the filer, so that property falls within the gain whose value may be ordered returned. The definition is covered on illicit gain.
Third: the Iraq Funds Recovery Fund
Under its first article, Law No. 9 of 2012 established a fund linked to the Council of Ministers called the "Iraq Funds Recovery Fund", with legal personality and represented by the chair of its board. The law was amended by Law No. 7 of 2019, and Instructions No. 1 of 2023 were issued to facilitate it.
Aim and scope: the second article provides that the Fund aims to recover Iraq's financial rights obtained unlawfully by others, Iraqi or foreign, through misuse of the oil-for-food programme, the sanctions, smuggling, economic sabotage or exploitation of the sanctions then imposed on Iraq, and to receive any compensation due to Iraq. The second article of the Instructions sets the time scope: rights obtained unlawfully before 9/4/2003, inside or outside Iraq. The first article of the Instructions places its seat in Baghdad.
Management: under the third article, the board is chaired by the head of the Integrity Commission, with the director general of the Commission's recovery department as deputy, and members representing the ministries of foreign affairs, oil, finance, justice and trade, the Central Bank, the Federal Board of Supreme Audit, the intelligence service and the Accountability and Justice Commission.
Powers: the fourth article allows the board to run the Fund's business, engage specialists inside and outside Iraq, propose international agreements, and bring civil and criminal claims inside or outside Iraq against natural and legal persons, appointing lawyers.
Oversight and the courts: the board reports every three months to the Council of Representatives and the Council of Ministers under the seventh article, and the Judicial Council assigns a first-class judge to hear cases within the Fund's remit under article 12. The tenth article provides that the Fund continues its work until its tasks are complete.
How the tools fit together
- Recent corruption money moved abroad: the Commission's recovery department, in coordination with the relevant bodies.
- An unlawful increase in a filer's wealth: a court order to return the value under article 19.
- Iraq's financial rights from the sanctions and oil-for-food era before 9/4/2003: the Iraq Funds Recovery Fund.
Legal basis and sources
- Integrity Commission Law No. 30 of 2011 as amended, articles 3, 10 and 19 (Official Gazette, issue 4217 of 14/11/2011)
- Iraq Funds Recovery Fund Law No. 9 of 2012, articles 1 to 4, 7, 10 and 12 (Official Gazette, issue 4231 of 27/2/2012)
- First Amendment to the Iraq Funds Recovery Fund Law, Law No. 7 of 2019 (Official Gazette, issue 4550 of 5/8/2019)
- Instructions No. 1 of 2023 facilitating the Iraq Funds Recovery Fund Law, articles 1 and 2 (Official Gazette, issue 4751 of 11/12/2023)
Frequently asked questions
Does the Iraq Funds Recovery Fund pursue current corruption cases?
Under its law and instructions, its scope is rights obtained unlawfully before 9/4/2003 in connection with the sanctions, the oil-for-food programme and related matters.
The accused died before judgment. Does recovery end?
The end of the case by death does not prevent enforcement of the order to return the value of the gain under the fourth paragraph of article 19.
Who pursues fugitive accused persons outside Iraq?
The Integrity Commission's recovery department, through its directorate for recovering accused persons. The Commission's structure is covered on the Integrity Commission: mandate and limits.
Related topics and articles
- 01Illicit gain in Iraqi law: definition, proof and penaltyThe definition of illicit gain in the seventh paragraph of article 1 of Iraq's Integrity Commission and Illicit Gain Law No. 30 of 2011 as amended, when a file opens, the ninety days to prove sources, and the penalties and return of value in article 19.
- 02The Federal Integrity Commission: mandate, structure and limitsThe eight duties of the Federal Integrity Commission in article 3 of Iraq's Integrity Commission and Illicit Gain Law No. 30 of 2011 as amended, its head, deputies and departments, oversight by the Council of Representatives, and the limits on its work inside ministries.
- 03Integrity courts: the cases they hear and the limits of their jurisdictionWhich cases the investigative and felony courts designated for integrity cases hear, the central anti-corruption felony court in Baghdad, and how the Federal Court of Cassation confined their jurisdiction to the offences in article 1 of the Integrity Commission Law.
- 04The financial disclosure form: who must file and whenWho must file a financial disclosure statement under Iraq's Integrity Commission and Illicit Gain Law No. 30 of 2011 as amended, the ninety-day and January deadlines, answering observations within sixty days, salary suspension, and confidentiality.
- 05Reporting a corruption offence: where to go and what happens nextReporting corruption offences under articles 1, 47, 48 and 49 of Iraq's Criminal Procedure Law No. 23 of 1971, keeping the reporter's identity confidential, an official's duty to report, and the Integrity Commission head's power to shelve reports under article 13 of its law.