Risks associated with real estate transactions include (Select Two.)

The correct answer is A. cross-border purchases. D. non-financed purchases.. Real estate transactions are vulnerable to ML/TF risks, particularly when there is limited transparency or unusual payment methods: Cross-border purchases (A):"Purchases by foreign buyers, especially from high-risk jurisdictions, are a red flag for money laundering in the real es

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

Across-border purchases.
Bpurchases in the name of a natural person.
Cpaying true market price for a property.
Dnon-financed purchases.

How the community answered

(46 responses)

A
76% (35)
B
15% (7)
C
9% (4)

Explanation

Real estate transactions are vulnerable to ML/TF risks, particularly when there is limited transparency or unusual payment methods: Cross-border purchases (A):"Purchases by foreign buyers, especially from high-risk jurisdictions, are a red flag for money laundering in the real estate sector."(CAMS 6th Edition, Real Estate Money Laundering Risks; FATF, Money Laundering and Terrorist Financing through the Real Estate Sector, 2007) Non-financed purchases (D):"Non-financed (all-cash) purchases can indicate the introduction of illicit funds into the financial system, bypassing the controls of mortgage lenders."(CAMS 6th Edition, Real Estate ML/TF Risks)

Topics

#real estate AML risks#non-financed purchases#cross-border transactions#cash purchases

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