[size=36]Economie| 08:55 - 02/05/2022[/size]
[size=36]A government advisor calls for legislation to encourage the return of Iraqi expatriate capital[/size]
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, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed, on Monday, that the phenomenon of the exit of Iraqi capital extends to the fifties of the last century, and while he indicated that the smuggled funds without legal prosecutions are considered expatriate national capital, he proposed legislation to encourage their return to the country. .
Saleh said, to the official news agency, that "the phenomenon of the exit of Iraqi capital and its settlement in its investment strongholds outside Iraq came according to a long history that extends back to the fifties of the last century, and the leakage of funds was done in invisible ways by inflating the values of imports through bank credits to wealthy importers, but on a very small scale.
He added, "The situation has continued by various illegal means over the years, political conditions, crises, long wars and economic siege, as Iraqi law historically did not allow Iraqi private sector investment abroad at all, which encouraged the phenomenon of flight."
He pointed out that "due to the abolition of restrictions on external transfer under the Central Bank of Iraq Law No. 56 of 2004 and the liberalization of the current account of the balance of payments in particular, economic freedom after 2003 allowed the leakage of a lot of money to invest outside the country with wide freedom and settlement in environments that may be of low return, but high Relative safety, without the availability of sufficient and explicit legal texts that prevent the leakage of capital outside the country or the existence of explicit texts that allow the exit of national capital for the purpose of investing outside the country, especially after this was permitted by Article (28/b) of the Central Bank of Iraq Law No. 56 of 2004 which stipulated: (the simple unconditional purchase or sale (cash or forward) of foreign exchange).
And he continued, "Thus, those funds that left the country without legal prosecution are considered national (expatriate) capital whose proceeds have been invested in various aspects of investment in assets or assets outside the country and for different years and enjoy the legal status in their foreign investment sites and are subject to the controls and conditions of the jurisdiction and legal area in countries Its foreign domicile, but unfortunately it is cut off from its home country Iraq, and it is excluded from the funds that the Iraqi state is currently pursuing based on the provisions of the Iraq Funds Recovery Fund Law No. 7 of 2019 amending Law No. 9 of 2012 on looting public money, as well as with the exception of funds that are subject to the Anti-Money Laundering Law Crime and Terrorism Money No. 39 of 2015
He pointed out that "in order to return the Iraqi expatriate investments abroad, it is appropriate to issue a legislation or a law that encourages the return of the Iraqi expatriate capital to the interior to find its way in the investment map in Iraq and to advance the development of our country, provided that it provides full legal protection for it and enjoys the same privileges that it obtains." The foreign investor through the effective investment law, as well as the enjoyment of all legal protection rights,” noting that “Iraq is organized under the International Convention for the Protection of Foreign Investments, specifically the International Investment Guarantee Agency known as “MIGA” and it is one of the agencies affiliated with the World Bank Group.”
Salih stressed, "The necessity of the birth of a semi-official entity to represent (the Investment Board for Iraqi Expatriates) to establish the best relations with the Iraqi expatriates to invest their money in their country of Iraq, whether real or financial investment and with the various assets that will be allowed by the Iraqi expatriate capital investment law, which we propose to issue." Ended 29/R77