Corruption in Iraq is pervasive at all levels of government. In 2021, President Barham Salih stated that US$150 billion of oil money had been stolen and smuggled out of Iraq in corrupt deals since the 2003 U.S. invasion. Endemic corruption pervades Iraq's oil and gas sectors, which still account for more than 99 percent of the country's exports and 85 percent of the government's budget. The Iraqi economy is predominantly a cash economy, making it almost impossible to trace the amount or the path the money follows.

Transparency International's Corruption Perceptions Index scores 180 countries on a scale from 0 ("highly corrupt") to 100 ("very clean") and then ranks the countries by their score; the country ranked first is perceived to have the most honest public sector. From 2013 to 2024, the Corruption Perceptions Index indicated that the Iraqi public sector was seriously corrupt but improving: Iraq's score remained constant or rose every year, rising from 16 to 26 over the twelve years. Its 2024 score of 26 ranked it 140th of 180 countries. For comparison with regional scores, the average score among Middle Eastern and North African countries was 39. The best score among Middle Eastern and North African countries was 68 and the worst score was 12. For comparison with worldwide scores, the average score was 43, the best score was 90 (ranked 1), and the worst score was 8 (ranked 180).

Political parties and public servants are considered corrupt, and petty corruption is highly institutionalized in Iraqi society.

Corruption is considered an obstacle to doing business in Iraq, and red tape and inefficiency continue to persist. Government contracting is an area reported to be affected by high levels of illicit activity, and public contracts are often awarded to companies connected to political leaders. Investors may come under pressure to take on well-connected local partners to avoid bureaucratic hurdles.

Corruption in Iraq is endemic, systemic, and the main threat to Iraq's stability after the defeat of ISIS.

In an Al Jazeera investigation, residents of Harthiya, a neighborhood in Baghdad alleged severe corruption in the construction sector. The neighborhood has experienced a construction boom since the 2003 invasion. Despite the many construction infractions, only a fraction of the revenue from government fines reaches the state treasury. Iraqi civil servants go around the neighborhood to inspect construction sites. When they spot wrongdoings, such as an extra floor in a building, an agreement is struck with the developer. The public official takes a bribe and in return, the state employee reduces the fine. The contractor pays the ticket and continues the project. Even if the builder pays in full, the fines are too small to deter construction companies when compared to the lucrative construction sector.

In the summer of 2022, an Iraqi anti-corruption commission uncovered a massive corruption scandal where US$700 million had been stolen from Iraqi state banks. The fraud resulted in a state of chaos and instability in government banking systems.

In October 2022, Iraq's acting finance minister Ihsan Jabbar shocked the nation by announcing an investigation into US$2.5 billion that had gone missing from Iraq's General Commission for Taxes, a department in the Ministry of Finance. It was described as "the heist of the century".