Anti-money laundering for the real estate sector

Money laundering prevention with Kerberos

As a provider of a 360° AML-compliance, we operate with standardised procedures. In doing so, we automatically adapt our risk analyses to your business operations. Requirements and risks in the real estate sector can differ from region to region. As a company operating throughout Europe, we address this aspect carefully.

By leveraging risk management, Kerberos also ensures the implementation of internal and external due diligence requirements for real estate agents. Our compliance packages are flexible and suitable for self-employed individuals as well as franchisors and licensees. We take care of the customised regular training and auditing of employees and at the same time provide you with digital solutions for the identification of your contract and business partners.

The reporting obligations set out in the Money Laundering Act can also be outsourced to Kerberos. We provide you with everything in this respect: from anonymous whistleblower platforms to money laundering officers.

Why is the real estate sector so attractive for money launderers?

The assumption that money laundering is mainly a problem in countries where the rate of crime is generally higher is wrong, according to recent studies. The money to be laundered is mainly not invested in the countries, where it was generated. Money laundering is therefore a transnational issue. When investing illegally acquired money, criminals proceed in the same way as legal investors.

According to a study on money laundering compliance in the non-financial sector from 2016, the key criteria for an investment are currency stability, inconspicuousness in the conversion of high assets, high transaction amounts for acquisition, appreciation rates, and the possibility of bringing in large sums of cash, e.g., for a deposit or to secure the entire purchase sum. Almost all these factors apply to real estate.

Money launderers also benefit from the fact that awareness of money laundering activities is still low in this sector compared to the financial sector. This occasionally also makes it more attractive and easier to cooperate with straw men, as such schemes are less likely to be prosecuted. 

Which precautions against money laundering are taken by lawgivers?

Policy makers and authorities are increasingly aware of the risk of money laundering in the non-financial sector, a risk, which also damages Germany's international reputation. Accordingly, obligations for the sector are being tightened progressively. Measures include, for example, the inclusion of realtors among the group of obligated parties, lowering of minimum thresholds as well as waiving the confidentiality obligations of notaries and lawyers as soon as money laundering is suspected, and reporting obligation/notification requirement must be met.

This makes it even more crucial to have innovative solutions that enable the real estate sector to avoid high fines and react dynamically to new regulatory developments. Kerberos Compliance facilitates an effective money laundering protection for real estate agents and managers. As a reliable partner, we take care of the fulfilment of increased obligations according to the Money Laundering Act while minimising compliance risks.