US among easiest countries to launder money via real estate – Report

• Published On: 27 March 2025 at 06:14

Transparency International has identified the United States as having a high risk of money laundering through its real estate sector.

Despite the country's advanced law enforcement capabilities, factors such as the ease of concealing property ownership through anonymous companies increase this vulnerability.

Transparency International evaluated 24 major economies in its report titled 'Opacity in Real Estate Ownership (OREO) Index' to determine which jurisdictions make it easiest to hide illicit money through real estate investments.



The ranking is based on two key factors: the availability of real estate ownership data and the sector's strong anti-money laundering regulations.

The countries assessed included Argentina, Australia, Brazil, Canada, China, England & Wales, France, Germany, Hong Kong, India, Indonesia, Italy, Japan, Mexico, Norway, Panama, Russia, Singapore, South Africa, South Korea, Spain, Turkey, the United Arab Emirates, and the United States.

According to the report, the United States, Australia, and South Korea are the three worst-performing countries out of 24 assessed.

This is primarily due to the lack of anti-money laundering regulations for key real estate professionals, leaving these jurisdictions extremely vulnerable to money laundering through property investments.

According to Transparency International, in some of the worst-performing jurisdictions—Australia, China, England and Wales, Japan, Turkey, and the UAE—properties can be purchased without any oversight body.

Real estate transactions in Russia and the UAE can be conducted entirely in cash, opening up significant opportunities for corrupt individuals to hide illicit funds anonymously and without oversight or scrutiny.

"We have known for a long time that real estate is a magnet for dirty money," Transparency International's CEO, Maira Martini, said.

"However, the OREO Index demonstrates that countries, including those that have recently reformed their systems, continue to have significant gaps. It's no surprise that real estate markets are flooded with dirty cash, rendering cities around the world unaffordable.

The report found that no country received a perfect score. South Africa, the only African country on the list, was ranked as the best-performing of the 24 jurisdictions evaluated by Transparency International.

South Africa's strong performance was attributed to the government's efforts to collect extensive data on real estate transactions, enforce stringent money laundering regulations, and implement "fairly decent" anti-money laundering rules for the real estate sector.

Ms. Martini added, "While progress has been slow, the OREO Index demonstrates that international anti-money laundering standards can have an impact." We urge standard-setting bodies like the Financial Action Task Force and global fora like the G20 to develop new policies and guidelines to help countries close remaining gaps."