Actual property nonetheless poses excessive threat of cash laundering

Real estate still poses high risk of money laundering

(CNS): More than 40% of property developers and real estate agents selected last year by the Department of Commerce and Investment for inspection for their anti-money laundering processes were found to be non-compliant with the regulations. According to both the DCI’s 2021 Supervisory Report and the National Risk Assessment 2021, which have both been made public, the local property sector remains highly vulnerable to both money laundering and terrorist finance abuse, given the lack of restrictions on foreign ownership.

In May last year, CNS reported on the risk property development poses, creating a weak link in Cayman’s anti-money laundering regime. However, it appears from these latest reports that work is still needed to address the vulnerabilities.

Real estate agents provide money launderers with the appearance of respectability and normality for large transactions, which frustrates detection and investigations, the 2021 NRA report said. Property here is a…