Respect MP George Galloway should be suspended from the House of Commons for 18 sitting days, Britain's Standards and Privileges Committee has said.
The committee said the Bethnal Green and Bow MP had been "complicit in the concealment of the true source of funds" for his Miriam Appeal, and said there was "strong circumstantial evidence" it had received cash from Britain's Oil for Food Programme.
The committee added that Mr Galloway had "damaged the reputation of the House".
Any ban - which requires the backing of MPs - would take effect from October when the Commons returns from its summer recess.
Commissioner Sir Philip Mawer delivered the committee's condemnation of Mr Galloway's conduct - both in terms of the charity and his approach to the inquiry.
He said the MP had "consistently failed to live up to the expectation of openness and straightforwardness" and considered the inquiry part of an "attempted political assassination".
Mr Galloway repeatedly denied facts, attacked witnesses "without justification" and made "wholly incorrect allegations without any factual basis", the report said.
Sir Philip also criticised the MP for arguing that securing the end of sanctions on Iraq "justified any and all the means he employed to achieve it".
Mr Galloway was previously condemned by the Charity Commission for "unacceptably" failing to prevent his Mariam Appeal being bankrolled with money from Saddam Hussein's regime.
Mr Galloway may even have known that the campaign had received at least £190,000 (€280,000) in improper donations, the commission found.