Money Laundering Risks in Commercial Real Estate: An Analysis of 25 Case Studies
03/05/2024
How and why do the criminal and corrupt stash ill-gotten proceeds in the commercial real estate sector?
For a comprehensive understanding of the money laundering risks in the commercial real estate sector, a joint effort was made by the Anti-Corruption Data Collective (ACDC), the FACT Coalition, and Global Financial Integrity (GFI). This collaboration involved meticulous examination of news articles, government indictments, and other publicly available information, resulting in the first-ever systematic overview of how suspicious money may be infiltrating U.S. commercial real estate.
This new report identifies 25 cases in which illegal, allegedly illicit, or suspicious funds were funnelled into commercial property over the last 20 years, with a total value of the property purchased exceeding $2.6 billion. To no surprise, California, Florida and New York are some of the most favoured locations for these illegal investments, but criminals stashed money across some 20 different states.
Originating from a diverse array of countries, suspicious funds from 14 nations, including Iran, North Korea, Kazakhstan, Russia, and Mexico, were drawn to the U.S. commercial real estate market. The types of properties involved were equally varied, ranging from hotels and shopping malls to supermarkets, a music studio, and an equestrian facility, demonstrating the breadth and depth of this global money laundering issue.
This report not only details these alarming cases but also underscores the urgent need for reform. It provides clear recommendations for the U.S. Treasury to swiftly implement comprehensive anti-money laundering measures, a crucial step in safeguarding the colossal U.S. commercial real estate industry from further exploitation.
SOURCE
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.