According to Greycoat specialists, money laundering is among the oldest forms of crime. Those who engage in it have been relentless in developing clever ways to evade the scrutiny of government regulators. Unfortunately, the real estate industry is a favorite field of play.
In the U.S., for example, an estimated $2.3 billion in illicit cash using American property assets from 2015 to 2021 alone, Greycoat agency informs. The U.K. is another prime target for international schemers. Just within the year 2017, 160 properties with a value of £4 billion were purchased by corrupt operators. That’s according to Britain’s National Crime Agency.
According to officials with one of the U.K.’s premier real estate firms, Greycoat Real Estate, money laundering produces additional negative effects that go beyond the crime itself. For example, it tends to skew property market prices by driving up prices artificially. Now experts at the Real Estate agency are calling for more assistance to combat the ever-persistent efforts of international dark players that are seeking to game the system.
What is needed is a highly detailed approach when due diligence is performed during real estate transactions. The due diligence process is covered by Know Your Customer (KYC) regulations as well as the AML (Anti-Money Laundering) rules set up by the government (Bdaily).
When used effectively, following these guidelines can catch out suspicious activity. Unfortunately, Greycoat Real Estate operators say following KYC and AML guidelines can be incredibly time-consuming and difficult to implement manually. Nevertheless, a continued effort to thwart money laundering via real estate is essential to maintain the integrity of the industry, not to mention how important it is to stop bad actors from getting away with nefarious activities on an international scale.