Quote from james_bond_3rd:
I could be wrong here but my impression is that they are not subject to Iraqi jurisdiction per arrangement with the occupation authority prior to the formation of the Iraqi government. They are not subject to US military code of conduct either because they are not part of US army. In other words, they are not subject to any law, Iraqi or US.
You are right When it comes to prosecution of criminal offenses. But the revocation of the contract of any company falls under the Iraqi jurisdictions.
AAA is mixing between the two.