The US Government repatriated this AK-47 to Iraq with other treasures: http://news.nationalgeographic.com/news/2010/09/photogalleries/100908-saddam-hussein-ak-47-iraqi-artifacts-world-science-pictures/#/iraqi-artifacts-returned-firearm_25664_600x450.jpg
According to the caption,
A U.S. soldier looted the AK-47 with Saddam Hussein's image from one of the late ruler's palaces in 2003.
The pearl-gripped gun had been displayed as a war trophy at the headquarters of the Third Stryker Brigade of the Second Infantry Division in Washington State until the AK-47 was retrieved by U.S. Customs agents and returned to Iraqi authorities.
Apparently, though our troops fought gallantly to overthrow the Iraqi tyrant, it was not possible for one of their units to keep this captured weapon as a war trophy. This seems wrong to me as does the description of the item being "looted." Perhaps, souvenir hunting is now officially frowned upon, but even under the politically correct standards of today, I wonder if it was a bit much for US Customs to seize this particular item from the Third Stryker Brigade, especially since it came from one of Saddam's palaces as opposed to a museum or private residence.
I also wonder what the current Iraqi government plans to do with it. See