Money laundering is a global problem where dirty money is cleaned through otherwise legit activities, for instance by investing it in real estate, like homes and commercial buildings.
While wealthy cities like London, New York, and Vancouver are often targeted, globally, this activity generates an estimated $1.6 trillion a year.
Through complex legal structures, it can be difficult to trace the real owners of an given property.
🇺🇸 In the US, 59% of property purchases by foreign buyers are made in cash and over $2.3 billion was laundered through the US real estate sector from 2015 to 2020.
🇦🇺 In 2021, Transparency International Australia’s chief executive said Australia had become the ‘destination of choice’ for the flow of illicit funds that often end up in the property market.
🇬🇧 The UK’s Treasury Department estimates that £4.4 billion of investment in UK real estate stems from politically exposed persons in high-corruption-risk jurisdictions.
🇨🇦 In Canada, more than 650 organized crime groups would be involved in mortgage fraud to launder money.
🏢 The transactions used for money laundering mainly concern homes and buildings, but any form of immovable property can be used to this end. Vineyards, are a good example.
Laundering through real estate can be done in a multitude of ways. Eliminating this practice starts with clearly identifying the warning signs. That's where compliancy comes in.
Take action now and request a demo.
