The FATF has updated its Guidance Document on the Risk Based Approach for the Real Estate Sector, following a public consultation exercise carried out in March-April 2022. The revised document highlights the importance for the sector to increase its understanding of the money laundering and terrorist financing risks it faces. As per the FATF, Money Laundering/Terrorist Financing vulnerabilities of the sector include exploitation by politically exposed persons, the purchase of luxury real estate, the use of virtual assets, the use of anonymous companies and gatekeepers as instruments to launder the proceeds of crime.
The revised FATF Risk-Based Approach Guidance for the Real Estate Sector can be accessed here.