The Ghana Real Estate Developers Association (GREDA) has expressed deep concern about the increasing flow of illicit money into the country’s real estate sector, warning of dire consequences for the economy. According to GREDA, the real estate sector, including both built and landed properties, has become a hotspot for individuals who have acquired wealth through dishonest means. This alarming trend has also been observed across the West African sub-region.
In an interview with the BFT in Accra Mr,Sammy Amegayibor, GREDA’s Executive Secretary, emphasized that the attractiveness of real estate for money laundering is due to its high value, low transparency, and ease of ownership transfer. Criminals are finding it easier to use properties as vehicles for storing and moving illicit funds, bypassing the stricter scrutiny applied to financial institutions.
He pointed out that tightened security measures in the banking and financial sectors have pushed money launderers to seek alternative avenues, such as real estate. Criminals often purchase properties in the names of relatives and friends, making it challenging to trace the true source and beneficiaries of the funds.
The infiltration of laundered money into the real estate sector has had significant economic and social consequences. Property prices in urban areas have soared, making it increasingly difficult for lower and middle-class individuals to own homes or afford rent. The prevalence of unoccupied high-rise buildings, allegedly acquired with illicit money, has become a common sight in cities like Accra.
GREDA is calling for a collective effort involving regulators and real estate professionals to establish better safeguards and robust detection mechanisms. They are urging members to conduct thorough background checks on clients involved in high-value transactions and advocating for collaboration to prevent the continued inflow of illicit funds into the real estate sector.
The association emphasizes the need for strong anti-money laundering mechanisms, transparent financial practices, and cooperation between the real estate sector, financial institutions, security agencies, and the government to address money laundering comprehensively.
Source : Property Express News -Joycelyn Marigold