Based on a review of more than 100 money-laundering cases, a new study finds that the U.S. has become a preferred destination for those looking to sta

‘A Kleptocrat’s dream’: US real estate a safe haven for billions in dirty money, report says

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2021-08-12 20:00:07

Based on a review of more than 100 money-laundering cases, a new study finds that the U.S. has become a preferred destination for those looking to stash illicit funds through property.

At least $2.3 billion has been laundered via U.S. real estate transactions in the last five years, according to a new report by a Washington, D.C.-based think tank.

By using a database of over 100 publicly reported real estate money laundering cases in the U.S., United Kingdom and Canada, Global Financial Integrity says the U.S. has become a preferred destination for those looking to use real estate to stash illicit funds — making it a “Kleptocrat’s dream.”

Public officials and their associates, known as politically exposed persons, were involved in more than half of the U.S. cases that GFI reviewed. Those PEPs include Genaro García Luna, a former Mexican security minister who bought millions of dollars of U.S. property while accused of taking bribes from the Sinaloa cartel, and the stepson of former Malaysian Prime Minister Najib Razak, who was arrested in 2019 for his alleged role in the 1MDB scandal.

“[Real estate] provides a really easy way to hide ill-gotten gains with little oversight and few questions asked,” GFI policy director Lakshmi Kumar told the International Consortium of Investigative Journalists. “If you’re a criminal, why would you not choose a method that allows you to flaunt your wealth openly, but also hide its illicit nature?”