After the collapse of Iraqi regime by coalition forces in 2003, MKO lost its main financial and military sponsor; Saddam Hussein former Iraqi dictator. Camp Ashraf the group's headquarters in 60 km North of Baghdad was seized by American forces who then granted "Protected Persons" status under 4th Geneva Convention to MKO members. The status under Geneva Convention does not apply to MKO any more after the end of hostilities and fighting situation.
In January 2009, due to the process of withdrawal of coalition forces from Iraq, the responsibility of Camp Ashraf was handed over to Iraqi government which has been determined to expel the group from its territory since the fall of Saddam Hussein. The name of the camp was changed into "Camp of New Iraq" by the Government.
In June 2009, Iraqi Police settled a station in the Camp where they became able to supervise the group's activities.
In the winter of 2010 a group of family members of residents of Camp of New Iraq (formerly called Ashraf) went to the Camp in order that they could visit their children in a free atmosphere without the presence of the Camp's authorities or at least gain news of them. The camp leadership has not allowed them to visit their beloved ones yet.
Different delegations of families have gone to the Camp gates so far but no one could manage to visit his/her beloved one. The families are labeled as the Islamic Republic spies by MKO leaders!
In July 2010, The Supreme Iraqi Criminal Court issued an arrest warrant against Massoud Rajavi, head of the Mojahedin Khalq as well as 37 others, including his wife, Maryam Rajavi, and his lieutenant Kazemi, according to (s /1/149) of 13/6/2010, Article (12) in place of Article (15) of the Code of Court No. 10 of 2005, which means that the Iraqi Interior Ministry and Interpol are notified to bring them to court.
Only a week after issuing an arrest warrant, the Iraqi criminal court judge who had issued the ruling was killed in a remote control bomb explosion.
For the present time MKO is awaiting an uncertain future.