2024-11-20
MONEYVAL 6th round evaluation visit to Latvia
FIU Latvia publishes money laundering risk assessment in real estate and construction sectors
30.06.2023
Real estate and construction sectors have historically been convenient avenues to launder proceeds of crime. The gaps in AML supervision of these two sectors globally, as well as the typically high level of informal economy in the construction sector in particular, provides ample opportunities for placing, layering and integrating criminally obtained funds in the legal financial system for criminals the world over.
Laundering money through real estate can also significantly distort the broader real estate market in any country. In market conditions where most struggle to purchase quality real estate, the inflow of criminally obtained funds into the real estate market further contributes to the predicament. This, in turn, has a wider socio-economic impact on societies, as well as on citizens' trust in state institutions.
The risk assessment is created with the aim of promoting the understanding of all the relevant parties about the risks of money laundering related to the real estate and construction sectors. By recognizing the associated risks, persons involved in the prevention of money laundering can appropriately manage them by applying a risk-based approach.
The document is available here:
Money laundering risk assessment in real estate and construction sectors
2024-10-29
FATF has updated lists with jurisdictions under Increased Monitoring