Real Estate has long been a target for money launderers.
It provides a tangible asset with stable pricing and the potential for capital appreciation over time, adding to its attraction for financial criminals.
The truth is that Real Estate companies are so susceptible to money laundering that the Financial Action Task Force (FATF) launched a landmark study and proposed new controls to help tackle targeted attacks.
Yet many companies in the sector are still failing to implement the necessary anti-money laundering (AML) and combatting the financing of terrorism (CFT) protocols.
Real Estate companies are now facing strict regulations
Because of its internationally recognised susceptibility, jurisdictions across the world are now clamping down heavily on Real Estate companies.
In the UK, the Proceeds of Crime Act 2002 requires anyone who encounters suspicious activity to report it, failing to do so is a criminal offence with a maximum penalty of five years’ imprisonment. In addition, the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 covered the AML responsibilities for the sectors considered most at risk of criminal activity; estate agents, property auctioneers, land agents, and some construction companies, are now all covered by the legislation.
For Real Estate companies based in the EU, minimum compliance standards including know your customer (KYC), know your business (KYB) and ultimate beneficial ownership (UBO) are set out in the 5th Anti Money Laundering Directive.
In the US, the Biden administration has also identified AML failures in Real Estate and as a result, is proposing a new AML regime for the sector with a particular focus on cash transactions.
In order to spot money laundering, it is crucial that you recognise your AML vulnerabilities
The first, and arguably most crucial step, in any compliance programme is to identify the AML vulnerabilities that can lead to exploitation.
To help you to identify those gaps, we have put together an in-depth report on the AML Vulnerabilities in Real Estate.
Download this valuable compliance analysis today.
In this spotlight report, we cover:
- Where Real Estate companies face financial crime risk
- The proscribed AML responsibilities for Real Estate companies
- How to ensure compliance globally
- How automation can help KYC
Download your free copy of this valuable compliance analysis here.
After identifying your AML pain points, automated processes are essential to monitor ongoing activity
Know your customer is a basic requirement for the Real Estate sector, yet many companies are still relying on costly and time-consuming manual screening.
The answer lies in the implementation of the latest automated AML & KYC screening solutions that are proven to cut the cost of compliance.
Automating AML processes provides peace of mind that activities such as screening and monitoring are taking place quickly and accurately, reducing the risk of a compliance failure.
RiskScreen’s world leading solutions are being adopted by an increasing number of Real Estate companies to help them to meet the challenges posed by money launderers.
To find out just how RiskScreen’s onboarding and screening solutions can transform your compliance programme in order to meet both existing and future obligations, request a discovery call today.