Real Estate Agency Council Urges Sector Professionals to Combat Illicit Financial Flows Amid Growing Money Laundering Risks

The Real Estate Agency Council (REAC) of Ghana has issued a stern warning regarding the vulnerability of the nation’s booming property market to money laundering and illicit financial activities. During a series of policy dialogues and workshops in Accra, organized in collaboration with Global Financial Integrity (GFI), REAC stressed that while the real estate sector remains a primary driver of economic growth, it has increasingly become a target for criminal exploitation. Emmanuel Jeffery, the Acting CEO of REAC, emphasized that real estate professionals must transition from being potential enablers to serving as the first line of defense—or "gatekeepers"—against the infiltration of illegal funds into the economy.

Ghana’s real estate crisis is defined by a stark paradox: a housing deficit of approximately 2 million units exists alongside a proliferation of luxury properties that often sit vacant. Industry experts, including researcher Maxwell Kpebesaan Kuu-ire, highlight that property is a preferred vehicle for money laundering, featuring in an estimated 74% of major global laundering schemes. With approximately $1.6 trillion laundered annually through global real estate markets, the influx of illicit funds into Ghana has artificially inflated property values, rendering housing inaccessible to the average citizen while allowing the true owners of high-end developments to remain invisible and unaccountable.

To address these systemic vulnerabilities, REAC is intensifying its enforcement of the Anti-Money Laundering Act, 2020, and the Real Estate Agency Act, 2020. The Council is rolling out mandatory licensing, rigorous compliance inspections, and public education programs to ensure that all practitioners adhere to strict due diligence and ethical standards. Madam Mary Shireen Ofosu, a compliance manager at the Financial Intelligence Centre, reiterated the necessity for transparency and urged the public to engage exclusively with licensed operators to avoid fraud and prevent the sector from being used as a "laundromat" for criminal proceeds.

Stakeholders across the industry have pledged to enhance their reporting mechanisms for suspicious transactions and to embrace compliance as a fundamental professional responsibility. By fostering collaboration between regulatory bodies and private practitioners, the Council aims to protect the integrity of the property market and safeguard the national interest. Moving forward, the effectiveness of these measures will depend on the sustained commitment of real estate professionals to prioritize ethical conduct over short-term financial gains, ensuring that the sector contributes to genuine, inclusive economic development rather than serving as a haven for financial crime.