Convention on the Prevention of War Profiteering and the Establishment of the Global Fund for Justice and Recovery

🌍 INTERNATIONAL INITIATIVE

Preamble

The States Parties to this Convention,
Recognizing that armed conflicts bring suffering to millions of people and cause grave damage to international peace and development;
Acknowledging that wars often generate opportunities for excessive profit by a limited number of economic actors;
Affirming the need to eliminate economic incentives that contribute to the continuation of hostilities;
Guided by the Charter of the United Nations, the Universal Declaration of Human Rights, and the Sustainable Development Goals (UN 2030 Agenda),
Have agreed as follows:

Part I – General Provisions

Article 1. Purpose of the Convention

This Convention establishes an international legal framework aimed at:

1. Identifying and restricting profits derived from armed conflicts;
2. Taxing and redistributing windfall gains in favor of affected regions and victims;
3. Preventing the economic motivation for war and militarization.

Article 2. Definitions

1. War windfall profit means any profit exceeding a company’s or sector’s average profit for the preceding three peaceful years by more than 25%, when such increase results directly or indirectly from price changes, demand, or contracts linked to an armed conflict.
2. Conflict beneficiary means any state, organization, or private entity whose financial results depend directly on the continuation or expansion of armed conflict.
3. Global Fund for Justice and Recovery (GFJR) means a multilateral trust managed jointly by the United Nations, the World Bank, and the International Monetary Fund, which accumulates revenues from the taxation of war windfall profits.

Part II – International Mechanism for Preventing War Profiteering

Article 3. Principle of Responsibility

1. States Parties undertake to prevent, limit, and suppress economic activities aimed at deriving profit from armed conflict.
2. Companies and financial institutions registered within their jurisdiction shall undergo a conflict-profit audit whenever a sharp rise in revenue occurs during wartime conditions.

Article 4. War Windfall Tax

1. A temporary international tax of not less than 35% shall be imposed on profits exceeding the “peace-time baseline” (the average of the preceding three years).
2. The tax shall be collected by national authorities under international oversight.
3. At least 80% of the proceeds shall be transferred to the Global Fund for Justice and Recovery.
4. The remaining 20% may be used for demilitarization programs, veteran rehabilitation, and humanitarian assistance.

Article 5. Transparency and Audit

1. States Parties shall establish open registries of beneficial ownership for companies operating in defense, energy, and raw-material sectors.
2. All relevant data on revenues, contracts, and taxes shall be subject to independent auditing under the supervision of the International Commission on Military Profiteering (ICMP), a special UN body.
3. An annual Global Report on War Profiteering shall be made publicly available.

Part III – The Global Fund for Justice and Recovery

Article 6. Objectives and Structure of the Fund

1. The Global Fund for Justice and Recovery (GFJR) shall finance:
• Reconstruction of destroyed infrastructure;
• Demining, disarmament, and humanitarian operations;
• Medical, ecological, and social rehabilitation of affected populations.
2. The Fund shall be governed by a Board of Trustees composed of representatives from the UN, World Bank, IMF, and ten rotating member states.
3. All expenditures of the Fund shall be independently audited and published through the OpenRecovery Data Platform.

Article 7. Freezing and Redistribution of Assets

1. States Parties shall identify and freeze assets belonging to entities recognized as conflict beneficiaries.
2. Upon the decision of an international tribunal, such assets may be partially or wholly transferred to the Global Fund for Justice and Recovery.
3. These measures shall comply with international law and the protection of bona fide property rights.

Part IV – Enforcement and Accountability

Article 8. International Commission on Military Profiteering (ICMP)

1. The ICMP shall be established under the authority of the UN Security Council.
2. It shall investigate cases of war profiteering, issue reports, and recommend sanctions.
3. The Commission may propose asset freezes, fines, or referrals to the International Court of Justice (ICJ).

Article 9. Liability for War Profiteering

1. Deliberate tax evasion, concealment of information, or manipulation of financial statements shall constitute economic complicity in war crimes.
2. Responsible persons shall be subject to prosecution under both national and international criminal law.

Part V – Final Provisions

Article 10. Signature, Ratification, and Entry into Force

1. This Convention is open for signature by all Member States of the United Nations.
2. It shall enter into force upon ratification by at least forty (40) States representing no less than sixty percent (60%) of global GDP.
3. Non-member states may join the Global Fund for Justice and Recovery as observers or donors.

Article 11. Review Mechanism

1. The Convention shall be reviewed every five (5) years to adapt to evolving economic and geopolitical realities.
2. Amendments shall enter into force upon approval by two-thirds of the States Parties.

📘 Annex A — Corporate Declaration Template
Enterprises operating in sectors connected to conflict shall annually sign a Declaration of Non-Participation in War Profiteering, confirming transparency, independent audit, and full disclosure of ownership.

📘 Annex B — Financial Formula

• War windfall profit =
  (Profit in the reporting year − Average profit over the previous three years) × 35% (or national rate).
• The rate may rise up to 60% for entities designated as repeat conflict beneficiaries.