2nd August 2022
The FIAU would like to inform subject persons that the FATF has updated its Guidance Document on the Risk Based Approach for the Real Estate Sector. This follows a public consultation exercise carried out between March – April 2022, in which the FIAU also provided its feedback.
The revised Risk-Based Approach Guidance for the Real Estate Sector highlights the importance for the sector to increase its understanding of the money laundering and funding of terrorist risks (ML/FT) it faces. The ML/FT vulnerabilities of the sector identified by the FATF include exploitation by politically exposed persons, the purchase of luxury real estate, the use of virtual assets to purchase real estate, the use of anonymous companies in transactions, and gatekeepers as instruments to launder the proceeds of crime.
Subject persons involved in the sector are invited to familiarize themselves with the said document and consider it in their assessment of ML/FT risks and application of mitigation measures.
The revised Risk-Based Approach Guidance for the Real Estate Sector can be accessed directly through the FATF website or through the FIAU website, by accessing the following link.