Large sums, one transaction

Real estate is repeatedly assessed as high-risk for money laundering for a structural reason: property absorbs large sums in a single transaction, holds or grows value, and can be bought through layers of ownership that obscure who is really paying. The EU Supranational Risk Assessment rates real-estate investment as high risk and the FATF has issued dedicated guidance for the sector. In Cyprus the sector is squarely in scope: estate agents are obliged entities, and source-of-funds scrutiny is central to any real-estate file.

The red flags: cash purchases or third-party funding with no clear connection to the buyer; offshore companies, trusts or nominees hiding the beneficial owner; prices materially out of line with market value; rapid flipping with no economic rationale; funds routed through multiple jurisdictions before completion.

The full sector assessment — the rating, the red flags, the expected controls — is published with its methodology: firm.cy/aml-sector/real-estate

Not legal advice. Verify against the primary source before acting.

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