New Central Bank Decision Aims to Enhance Real Estate Transaction Transparency
The Real Estate Registration Department has announced a new directive following a decision from the Central Bank of Iraq concerning real estate transactions valued at over 100 million dinars. This decision mandates that both the seller and buyer must establish accounts with approved banking institutions to facilitate transactions. Moreover, it requires a verification process for the source of the buyer’s funds.
Objective of the Decision
The primary goal of this initiative is to bolster transparency and combat money laundering activities in the realm of substantial real estate transactions. It also seeks to ensure the safety of financial protocols associated with such dealings. The directive was prompted by growing concerns regarding unregulated financial operations linked to significant real estate exchanges lacking adequate safeguards.
The official document emphasizes the necessity for stakeholders to comply with these new regulations to prevent any legal infractions that could hinder the real estate sector within the country.
Response from Lawmakers and Public Sentiment
Despite the clear objectives of the new ruling, it has encountered resistance from certain members of the House of Representatives and other interest groups concerned about its potential impact on the stagnant real estate market. However, there is considerable support within Iraqi society for initiatives aimed at curtailing money laundering activities, especially in light of the fact that real estate prices have surged more than 300% in recent years.
This decision marks a significant step in the ongoing efforts to regulate the real estate market and ensure sustainable economic practices.
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