A detailed report by Global Financial Integrity (GFI) has revealed significant money laundering vulnerabilities in Ghana’s real estate sector, with at least $48.8 million laundered through the industry. The analysis examined 16 cases involving 24 properties and 510 acres of land, linking the crimes to corporate fraud, corruption, theft, and drug trafficking.
The findings indicate that 87.5% of the cases involved residential properties in the Greater Accra Region. Weak regulations for Virtual Assets and Virtual Asset Service Providers (VA/VASPs) and limited oversight have heightened the sector’s exposure to illicit financial activities.
Key issues identified in the report include:
• Minimal impact of Suspicious Transaction Reports (STRs) from Designated Non-Financial Businesses and Professions (DNFBPs), with only two STRs filed between 2016 and 2019.
• Lack of verification for beneficial ownership in real estate transactions.
• The Real Estate Agency Council (REAC) remains non-operational, hindering effective supervision and coordination.
To combat these vulnerabilities, GFI recommends operationalizing the REAC to centralize regulation, improving compliance among DNFBPs, and implementing an authorized system to verify beneficial ownership information.
Maxwell Kuu-ire, Policy Analyst for GFI West Africa, highlighted difficulties in accessing information during the study, underscoring the need for greater transparency and collaboration with regulatory bodies.
The report also advocates for regulatory frameworks for VA/VASPs, increased awareness on Real Estate Money Laundering (REML), and stronger enforcement measures to safeguard the sector.