In the past 48 hours, the federal police have raided homes and offices linked to the NSW construction company, Lifese, and moved to charge three men, including Elomar's father, Mamdouh Elomar.

Mohamad Elomar is fighting with the terrorist group IS in Iraq and has gained public infamy for posing with the severed heads of men killed by the group.

Prior to his departure to Iraq in 2013, Mohamad Elomar was working in the construction industry with various organised crime figures, including convicted terrorist Khaled Sharrouf, who is also fighting with IS.

Fairfax Media has previously revealed how the pair attempted to extort money from building industry firms, including a company owned by billionaire developer Harry Triguboff.

Court documents reveal the AFP investigation involves allegations that figures connected to Lifese attempted to bribe an Iraqi foreign official in order to win contracts in Iraq.

Lifese was created in Sydney in 2005 and a website linked to the company states it specialises in "construction and engineering services to the petrochemical, gas, mining, railway and power industries, and maintenance of buildings, bridges and silos".

It is understood that no allegations of terrorist financing have been made as part of the case against the three men, and Fairfax Media is not suggesting Mamdouh Elomar had any involvement in or knew of his son's terrorist activities.

One of Mamdouh's co-accused, Iraqi born John Jousif, 45, of Fairfield, NSW, appeared briefly in Central Local Court on Friday afternoon.

He was charged with attempting to bribe a foreign public official and was granted bail, with his release likely to take place on Saturday.

He is also charged with intending to use as an instrument of crime, namely, a sum "greater than 1 million dollars".

In documents before the court, police allege that Mr Jousif made or offered the bribe on Thursday between 5pm and 7pm in order to achieve a "business advantage".

They allege that the money was itself the proceeds of crime.

Commonwealth prosecutor Imad Abdul-Karim did not oppose bail and it was granted by Magistrate Mark Buscombe with strict conditions.

These included that he provide $10,000 as a security, surrender his passport and reside at his family home in Fairfield.

Mr Jousif was also forbidden from contacting his co-accused in the matter, Ibrahim and Mamdouh Elomar, and another man referred to as "Al Zubadi".

The court heard that Mr Jousif has lived in Australia since 1992 and is a permanent resident.

Mr Jousif will return to court on April 14 while Mamdouh and Ibrahim Elomar will appear in court on foreign bribery charges next month.

The pair face jail sentences of up to 10 years if the bribery charges are proven. Mr Jousif may face a jail term of up to 25 years if he is convicted of the money laundering charges.

The case is Australia's second foreign bribery prosecution in 15 years and highlights the AFP's increased focus on international money laundering and bribery.

Mr Jousif runs several companies out of a small office in Fairfield, including a construction firm and a pharmaceutical firm selling products across the Middle East and in China.

He has also helped manage a small crude oil company registered in Sydney and with an office in Iraq.

The AFP's top corruption investigator, Commander Linda Champion, said that the AFP was determined to probe all allegations "that Australian companies or citizens are circumventing lawful processes when pursuing business opportunities [overseas]".

"Foreign bribery undermines the credibility of Australian businesses here and overseas," Ms Champion said.