Calls for anti-money laundering measures as property prices soar in Baghdad
Shafaq News / The director of the Iraqi Political Economic Center, Wissam Hadmal Al-Hilou, has raised concerns over alleged money laundering operations that have contributed to skyrocketing property prices in the capital city of Baghdad.
In a statement released on Sunday, Al-Hilou highlighted that "over the past three years, property prices in Baghdad have risen to astronomical levels, exceeding those in renowned capitals and cities like London and Dubai. The price per square meter has surpassed 12,000 dollars". He attributed the surge in prices to large-scale corruption in the Iraqi state, including the theft of tax deposits and other illicit activities.
He stressed the importance of conducting thorough checks on the sources of funds when purchasing properties and before registering them in the state's property registry, stating that "the government, the Federal Integrity Commission, and the Central Bank of Iraq should audit the sources of funds to ensure they are legitimate."
Moreover, Al-Hilou suggested seeking the help of international legal consulting firms to review all sales contracts conducted in recent years that exceeded market prices. He urged the individuals who paid these amounts to provide documents that prove they have obtained their funds through legal means.
Al-Hilou commended the Central Bank of Iraq's recent move to require Iraqi banks to participate in the sale and purchase of properties worth more than 500 million dinars to fight money laundering. The bank's measures include depositing the value of the sold property in banks and undergoing several procedures in the Iraqi registration department and other relevant authorities.
He also emphasized the importance of implementing these procedures strictly and without exception to reduce the sale of properties at inflated prices and to prevent corrupt individuals from using public funds to purchase properties.
Al-Hilou urged the government to reform the property registration system and amend the current law, which dates back to 1971, to address the loopholes that enable corruption and the misuse of public funds.
"In addition to the suggested measures, there should be amendments in capital level laws that require those who have funds not to repeat purchase processes at close intervals and to encourage them to invest in other sectors, especially productive ones. This should be done by providing incentives, exceptions, and tax exemptions to support the economic reality rather than freezing funds in properties", he concluded.
