Real Estate is greatest tool of Laundering Money

For last two posts which i made using the #proofofbrain, i saw a significant increase in the rewards. Hence i am now continuing to post my other thoughts on financial crimes through the method. Today my topic is Real Estate Laundering.

Real Estate is one of the greatest tool of money laundering in the world. There are multiple methods of laundering money. Some of the common methods of money laundering are

• Use of accomplices: Criminals can make the title deed on someone else while buying real estate. This third person is usually a family member with no criminal record. The property is purchased on their behalf, and the proceeds of crime are deposited into third parties' accounts. In this way, the criminals will not be directly mentioned in any reports.

• Use of mortgages: Credit and mortgage are used as collateral for laundering crime proceeds. Generally, booking the real estate and obtaining the refunds in bank accounts can be used to mix illegal funds with legitimate funds. This technique is a classic #proofofbrain.

• Manipulation of property values: In an interesting articles shared by the global aml certification provider, another technique was revealed. Criminals may cooperate with third parties such as real estate agents to underestimate or exaggerate a property's value. Evaluating the property value with a sales contract lower than the actual purchase price is called undervaluation. Criminals may overestimate real estate in an attempt to get the largest possible loan from a lender. The larger the loan, the more illegal funds that can be laundered to service the debt.

• Applying cash deposits to purchase real estate: Criminals deposit cash below the reporting threshold between different banks to avoid transaction reporting. The funds are then used to obtain bank checks to purchase real estate.

• Rental income legitimizes illegal funds: Criminals rent their property by providing illegal funds to cover rent payments to tenants to legitimize illegal funds. They can also buy property on behalf of a third party and pay rent to that person using illegal funds.