Ghanaian real estate professionals must strengthen due diligence measures. This prevents the sector from exploitation for money laundering and other illicit financial activities. This call came at a workshop in Accra on June 30, organized by Global Financial Integrity (GFI) and the Real Estate Agency Council (REAC).
Brokers, property agents, developers, and mortgage service providers attended the event. Discussions focused on the rising risks of illicit financial flows (IFFs) in the country's real estate sector. Participants also explored their collective responsibility to address these issues.
Ghana's real estate sector is a vital component of its economic development. It contributes significantly to economic growth, job creation, and wealth generation. However, its appeal to legitimate investors also makes it vulnerable to abuse by criminals. These individuals seek to hide or legalize money from unlawful activities. The sector's estimated contribution to Ghana's GDP has consistently grown in recent years, reflecting its significant economic footprint. This growth underlines the importance of safeguarding its integrity against financial crimes.
Mr. Emmanuel Jeffery, Acting Chief Executive Officer of the Real Estate Agency Council, spoke at the opening. He described the real estate industry as a critical pillar. He emphasized its strategic position within Ghana's economy. Madam Mary Shireen Ofosu, Manager of Compliance at the Financial Integrity Centre, noted the industry remains a key target for money laundering. She stated that criminals often use property transactions to disguise illicit wealth. They integrate illegally acquired funds into the formal economy.
Decision-makers and regulatory bodies will likely increase monitoring and enforcement in the real estate sector. Professionals must commit to due diligence, transparency, and ethical conduct. This will protect the industry's integrity and support national efforts against illicit financial flows. Increased awareness among industry players is crucial. This will prevent such practices and maintain public confidence in the sector.
Prospective property buyers and the public should only transact with licensed real estate operators. This avoids fraud or accidental participation in unlawful activities. Greater transparency and compliance with regulatory requirements will reduce vulnerabilities within the industry. This also strengthens efforts to combat illicit financial flows. This engagement forms part of broader initiatives by regulators and financial integrity institutions. These efforts ensure Ghana's growing property market drives economic development, not financial crime.