Iraq: Billions of Money Laundering Disappear in Real Estate

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[size=52]Iraq: Billions of Money Laundering Disappear in Real Estate[/size]

[size=45]An Asian report spoke of a significant increase in house prices in Iraq, stressing that the purchase of real estate has become a channel for money laundering. A report by (Vietnam Net), followed by (Al-Mada), said, “Youssef Ahmed, a communications worker, is married and has a 5-year-old son. He and his wife still live with their parents because they cannot afford to buy a house amid the high real estate prices in Iraq.”[/size]
[size=45]The report added, "Ahmed's salary is one thousand US dollars, twice the average income in this country located in Western Asia."[/size]
[size=45]He pointed out, “Ahmed said: Even if the income increases, it will never be equal to the exorbitant prices of houses or lands.”[/size]
[size=45]The lush farmlands and palm groves on the outskirts of Baghdad that were once a source of pride for Iraqis under concrete are slowly disappearing, as real estate profits outpace agriculture.[/size]
[size=45]And he added, "Iraqis like Ahmed, who dream of their homeland, see few opportunities," pointing out that "Ahmed is currently studying the possibility of obtaining a bank loan to buy a house."[/size]
[size=45]The report noted that “bank interest rates are high, up to 10% per year, but income does not increase,” stressing “the difficulty of searching for a house even in the suburbs.”[/size]
[size=45]Ahmed is quoted as saying, “If you go out of the center, there will be traffic problems, however, the prices will not drop much. I thought about it but there is no way.[/size]
[size=45]The report stated, "Iraq is a country rich in oil, but corruption is rampant, even real estate becomes a channel for money laundering."[/size]
[size=45]He believed, "The failure of housing planning and the increase in demand have pushed house prices in the capital, Baghdad, beyond the means of many middle-income people."[/size]
[size=45]The report added, "The World Bank finds that the Iraqi banking system is underdeveloped, as only one in five people has a bank account."[/size]
[size=45]And he added, "This led to the conclusion that many real estate transactions are carried out in cash. This means that selling real estate is a way to hide money in dirt and buildings easily and quickly."[/size]
[size=45]And the report went on, “A government official said: The rise in real estate prices has nothing to do with the market, but with the mafia and money laundering.”[/size]
[size=45]The report talked about "the violence that invaded Iraq after the change of the previous regime in 2003, which caused a decline in real estate prices."[/size]
[size=45]However, he went back to explaining that “the Iraqi market has witnessed an increase in recent years, and in the Karrada commercial area, the prices of old buildings previously ranged between 1,200 to 1,700 US dollars per square meter, but these amounts have recently increased to range from 7 to 5 thousand dollars.” per square meter.”[/size]
[size=45]And the report continues, “Hussein Al-Saffar, who is one of the real estate brokers in the Jadiriya area, says that prices in that area range from 4 thousand to 8 thousand dollars.”[/size]
[size=45]He pointed out, "Iraq revealed a major corruption scandal by stealing $2.5 billion from Iraqi tax secretariats at the end of last year."[/size]
[size=45]And the report went on, that "Prime Minister Muhammad Shia' al-Sudani said that recovering the stolen money was complicated by its use (to buy real estate in key areas of Baghdad)."[/size]
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