The real estate sector's vulnerabilities to money laundering and corruption extend beyond simple schemes to use illicit funds when purchasing property. In many cases, the third parties involved in such deals pose risks too.
A crackdown on Dutch financial gatekeepers who fail to comply with anti-money laundering rules is handing investigators in the Netherlands a cache of useful leads.
The new law extends anti-money laundering program requirements to industries including real estate companies, company formation agents and consumer credit businesses. They also set guidelines for determining beneficial ownership of various entities.
Many believe a surge in suspicious activity reports filed for suspected mortgage fraud - and the findings of two 2006 FinCEN reports detailing rising fraud and money laundering in mortgage lending and real estate - could force the agency to begin regulating those businesses as early as this year.
print