Typologies
TYPOLOGIES OF MONEY LAUNDERING THROUGH THE REAL ESTATE SECTOR IN WEST AFRICA
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Various studies, including those carried out by the Financial Action Task Force (FATF) over the past few years, suggest that advances in technology and the progressive tightening of anti-money laundering (AML) regulations are leading money launderers to make more complex arrangements outside the formal financial services industry, such as the use of various professional services, and in particular the real estate business.
The primary objective of this typologies exercise is to carefully examine the vulnerability of the real estate sector in West Africa, given the large volume of monetary transactions involved and its significant impact on geo-political and socio-economic conditions in the West African region. The exercise also attempts to shed light on how the real estate sector in West Africa could be especially attractive to launderers.
The study aims essentially at (i) exploring the means by which illicit funds are channelled through the real estate sector to be integrated into the formal economy, and (ii) identifying the control measures in place to combat this form of abuse in member states. It is essential to note that one of the most effective ways of gathering information on how the sector is manipulated is to examine concrete case studies. The report is therefore based on information provided by GIABA members who took part in the 2008 typologies exercise.