TI proves Real estate remains a haven for dirty money.

Transparency International and the Anti-Corruption Data Collective have just released the first-ever Opacity in Real Estate Ownership (OREO) Index.

The OREO index

1. Provides a comparative assessment of 24 jurisdictions, including key G20 countries, that measures the transparency of property data and the strength of Anti-Money Laundering frameworks.
2. Underscores the need for stronger regulations and greater transparency to combat money laundering through the real estate sector.

The OREO Index evaluates two primary metrics:

1. Scope and availability of real estate data:
1. This measures the comprehensiveness and accessibility of property data in each jurisdiction.
2. Strength of AML legal frameworks:
1. This assesses the effectiveness of regulations designed to prevent and detect money laundering in the real estate sector

The findings reveal

1. Significant vulnerabilities in global real estate markets, as many jurisdictions permit property to be held anonymously and lack robust third-party controls.
2. South Africa emerged as the best performer, while Australia, South Korea, and the United States were among the worst due to insufficient AML regulations for real estate professionals

The findings are alarming:

1. Not a single jurisdiction assessed is free from loopholes that allow criminals and the corrupt to launder illicit funds through Real Estate.
2. In many countries, properties can still be acquired through anonymous companies or trusts without disclosing the Ultimate Beneficial Owners.
3. Key professionals such as developers, notaries, and real estate agents are not always subject to AML obligations.
4. Property Registers remain fragmented, hard to access, and largely closed to the public.

The report calls for bold reforms:

1. Mandatory disclosure of Beneficial Ownership — including for foreign entities — in real estate transactions.
2. Required involvement of regulated professionals in high-risk real estate deals.
3. Open and public access to comprehensive data on property ownership and transactions.

References

• https://images.transparencycdn.org/images/2025-Report-OREO-Index-English.pdf
• New index reveals alarming opacity and money… - Transparency.org https://www.transparency.org/en/press/new-index-reveals-alarming-opacity-and-money-laundering-vulnerabilities-global-real-estate
• L’argent sale a toujours une adresse - transparency-france.org https://transparency-france.org/2025/03/26/largent-sale-a-toujours-une-adresse-le-nouvel-lindice-dopacite-de-la-propriete-immobiliere-oreo-de-transparency-international/   
• Global property markets at risk of exploitation, warns new report https://iclg.com/news/22428-global-property-markets-at-risk-of-exploitation-warns-new-report