Transparency International and the Anti-Corruption Data Collective (ACDC) released a global index on real estate market opacity, confirming real estate's allure for money laundering in many countries.
Global Trends
The study of 24 jurisdictions reveals real estate as a preferred vehicle for laundering funds. High asset value, insufficient controls, and complex legal arrangements make the sector attractive for illegal operations. In the US, about 2.3 billion dollars from 2015 to 2021 were potentially illicit real estate investments, while in the UK, properties owned by Russians linked to corruption are valued at 1.9 billion dollars.
France's Position Among Global Leaders
France ranks third in the global index of real estate ownership opacity, thanks to data transparency and strengthened anti-money laundering framework. However, gaps remain: developers and property dealers have fewer obligations compared to notaries and agents, creating opportunities for financial crime.
Need for International Cooperation
Combatting money laundering requires international cooperation and enhanced transparency. Despite its gains, France must address regulatory gaps to avoid becoming a target for circumventing international norms.
Real estate remains a significant tool for money laundering. Global efforts are needed to strengthen regulations and protect markets from illegal operations.
