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The United Nations Compensation Commission (UNCC) was located at the Palais des Nations within the United Nations Office in Geneva, Switzerland. It was created in 1991 as a subsidiary organ of the United Nations Security Council under Security Council resolution 687 (1991) to process claims and pay compensation for losses and damage suffered as a direct result of Iraq’s unlawful invasion and occupation of Kuwait in 1990-1991.
About 2.7 million claims, with an asserted value of $352.5 billion, were filed with the Commission. The Commission concluded claims-processing in 2005, and the total compensation awarded was $52.4 billion to approximately 1.5 million successful claimants. Nineteen Panels of Commissioners reviewed and evaluated the claims submitted by governments, international organisations, companies and individuals. The panels reported their recommendations to the Governing Council for approval. Funds to pay compensation were drawn from the United Nations Compensation Fund which received a percentage of the proceeds generated by the export sales of Iraqi petroleum and petroleum products. This percentage was originally set at 30 per cent and was reduced over the years under various Security Council resolutions and Governing Council decisions. It was most recently set at three per cent under Governing Council decision 276 (2017).
With the January 2022 payment made to the last remaining claim with an outstanding balance, the $52.4 billion in compensation awarded was paid in full and distributed to the 1.5 million claimants. As such, a special session of the Governing Council was held on 9 February 2022 to mark the fulfilment of the Commission’s mandate after nearly 31 years. At this session, the Governing Council adopted its final decision, decision 277 (2022), declaring that the Government of Iraq has fulfilled its international obligations to compensate all claimants awarded compensation by the Commission for losses and damages suffered as a direct result of Iraq’s invasion of Kuwait.
On 22 February 2022, the President of the Governing Council presented the Final Report of the Governing Council on the work of the Compensation Commission (S/2022/104) to the Security Council. The Security Council subsequently adopted resolution 2621 (2022) which terminated the mandate of the Commission and confirmed that the Commission's claims process was complete and final.
The final session of the Governing Council was held on 9 December 2022. After more than 31 years, the Commission closed on 31 December 2022, as required under Security Council resolution 2621.