Two anti-corruption actors launch an index on opacity in real estate

According to the authors of the study, "real estate has long been an ideal haven for laundering dirty money" due to the "high value" of the properties, the "few controls" and "the possibility of concealing the identity of owners through shell companies or trusts."

Transparency International and the Anti-Corruption Data Collective (ACDC) estimate that illicit money was invested in the United States between 2,3 and 2015 at "approximately $2021 billion."

"In the UK, £1,5 billion (nearly $1,9 billion) of property belongs to Russians linked to corruption or the Kremlin," according to the study, which also cites Australia and France as countries targeted for property laundering, as well as Dubai, described as a "real haven for opaque transactions."

The two anti-corruption watchdogs ranked 18 G20 member countries, including Spain, Norway, Hong Kong, Panama, Singapore, and the United Arab Emirates, based on two criteria: "the transparency of real estate ownership data and the effectiveness of anti-money laundering measures in real estate transactions."

The Real Estate Opacity Index (OREO) concludes that "in the majority of countries studied, money launderers take advantage of legal loopholes to conceal their identities and invest in real estate without real control."

South Africa came in first place, ahead of Singapore and France. At the other end of the scale, Australia received the lowest score, behind South Korea and the United States.

France owes its third place to "the opening of its real estate data," particularly on "properties held by legal entities," but the report also points out shortcomings, "notably the exclusion of real estate developers and property dealers from anti-money laundering obligations."

Illustrative image of the article via Depositphotos.com.