Iraq's Prime Minister Mohammed Shia Al Sudani has ordered the setting up of a new anti-corruption body and a supporting security team with “broad powers” that will be led by the former head of a highly secretive intelligence unit.
The new team for enforcement of anti-corruption operations will be led by Abdul Karim Abd Fadel, director general of the Interior Ministry and former head of the secret Falcons Cell intelligence unit, an organisation that worked closely with former prime minister Nouri Al Maliki.
It was later seen as close to Iran-backed Shiite militias, raising concerns over politicisation of the new anti-corruption effort.
The “exceptional” High Anti-Corruption Commission was created to combat corruption with “unconventional mechanisms to avoid the previous shortcomings”, the Prime Minister's office said in a statement issued late on Wednesday.
The new body will “speed up addressing major corruption cases, work for extradition of those wanted for corruption-related cases and return the money”, it said.
Judge Haider Hanoon Zayer, chief of Iraq's federal anti-corruption agency, will lead the new commission.
Mr Al Sudani also ordered the formation of a “special support team with broad powers” to support the commission, his office said, without specifying its powers.
Mr Fadel, widely known by his nom du guerre Abu Ali Al Basri, was one of the founders of the Falcons Cell when it was created in 2009 under the supervision of former prime minster Nouri Al Maliki.
The cell, which received direct training from the CIA and Britain's MI6, gained a solid reputation after making key arrests of Sunni insurgents and thwarting attacks during the fight against Al Qaeda and then ISIS.
The unit worked independently and answered directly to Mr Al Maliki, who served from 2006-2014.
The Falcons Cell gained international attention following publication in 2020 of a book by the journalist Margaret Coker, who worked at The New York Times. The Spymaster of Baghdad provided an inside look at the cell's operations and praised them as a rare success story in Iraq's fight against terrorism.
Mr Fadel was appointed to his Interior Ministry post as part of a wide reshuffle of the military, police and intelligence leadership after back-to-back suicide bombings in Baghdad that killed 32 people and injured more than 100 in early 2021.
Then prime minister Mustafa Al Kadhimi's decision move Mr Fadel was seen as an attempt to weaken Iran-linked parties and to bring the Falcons Cell under his control. He had pledged to reign in Iran-backed Shiite militias when he took office in May 2020.
Mr Al Sudani, who enjoys the backing of Iran's staunch allies in the Co-ordination Framework parliamentary bloc, has been replacing government officials appointed by Mr Al Kadhimi with others linked to or close to the bloc's members.
The Co-ordination Framework, comprising political groups linked to Iran-backed militias, is the largest bloc in Iraq's Parliament with 138 out of 329 seats. Mr Al Sudani took office late last month after parliament approved his government line-up, ending a year-long political stalemate between Iraq's pro-Iran Shiite factions and followers of nationalist Shiite cleric Moqtada Al Sadr.
Mr Al Sudani's term started with the exposure of two major corruption scandals.
The first case involved the embezzlement of 3.7 trillion Iraqi dinars (almost $2.5 billion) from the federal tax authority in what is being described locally as “the theft of the century”.
The second came to light when the National Security Service arrested a network for siphoning crude oil from pipelines in remote areas of southern Iraq and smuggling it out of the county. Senior Interior Ministry and intelligence officers were allegedly involved.
Corruption is rife in Iraq, which ranks a lowly 157 out of 180 countries listed in Transparency International's corruption perceptions index.
It has hamstrung the country’s efforts to recover from decades of war and UN economic sanctions imposed during Saddam's regime.
Last year, former president Barham Salih estimated that Iraq had lost $150bn to embezzlement since 2003.
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UAE%20ILT20
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
COMPANY%20PROFILE
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UAE's role in anti-extremism recognised
General John Allen, President of the Brookings Institution research group, commended the role the UAE has played in the fight against terrorism and violent extremism.
He told a Globsec debate of the UAE’s "hugely outsized" role in the fight against Isis.
"It’s trite these days to say that any country punches above its weight, but in every possible way the Emirates did, both militarily, and very importantly, the UAE was extraordinarily helpful on getting to the issue of violent extremism," he said.
He also noted the impact that Hedayah, among others in the UAE, has played in addressing violent extremism.
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
