The Financial Action Task Force (FATF) has published new guidance on anti-money laundering (AML) risks in the property industry.
This follows a consultation in March and April 2022 on the issue, where contributors called for greater clarity for property professionals on the risks associated with money laundering.
The FATF’s assessments of the industry show that there is “a poor level of understanding” of AML risks and how to mitigate them. Things that the sector is particularly vulnerable to include exploitation by politically exposed persons; the use of virtual assets; the use of anonymous companies; the purchase of luxury property; and gatekeepers as money laundering instruments.
Agricultural and commercial properties are also vulnerable to money laundering, say the FATF.
Therefore, at the request of contributors to the consultation, the FATF is to harmonise its requirements to increase the certainty with which actors can operate. The approach will now also be more risk-based, and will extend to property developments, leasing, and other areas which were not previously covered. The taskforce said that “the great majority of contributions were included as suggested”.
Read the full guidance here.
