Dirty Money: French Real Estate Is Holding Up Better Than Its Neighbors

A global study reveals that real estate remains widely used for money laundering, with gaps identified in all the analyzed countries, including France, which nevertheless ranks among the good students.

Real estate still prized for money laundering

Transparency International and the Anti-Corruption Data Collective (ACDC) released their first global index on the opacity of real estate markets on Wednesday. This study analyzes 24 different jurisdictions and confirms what experts have long suspected: real estate is a favored vector for laundering illicit funds.

Three factors explain the attractiveness of the sector for illicit funds:

• The high value of assets allows for laundering large amounts in a single transaction
• Controls remain insufficient in most of the studied countries
• Complex legal arrangements (shell companies, trusts) facilitate the anonymity of real owners

The numbers are revealing: in the United States, about 2.3 billion dollars of real estate investments are said to come from illicit funds (2015-2021). In the United Kingdom, properties owned by Russians linked to corruption would represent nearly 1.9 billion dollars.

France among the good students, but progress is still needed

The opacity index of real estate ownership (OREO) ranks France in third position globally, behind South Africa and Singapore. This honorable performance is mainly explained by the transparency of French real estate data, particularly regarding properties held by legal entities.

The French land register and notarial databases are valuable tools in the fight against opacity. France has also strengthened its anti-money laundering framework in recent years, requiring many professionals to report suspicious transactions.

However, the report points to persistent flaws in the French system. Real estate developers and property dealers are not subject to the same obligations as notaries or agents in terms of anti-money laundering efforts. This exclusion creates a gray area that financial criminals can exploit.

At the other end of the ranking, Australia, South Korea, and the United States are at the bottom. Dubai is particularly highlighted as “a true paradise for opaque transactions”, where real estate investments can serve as a refuge for questionable funds.

The fight against money laundering requires strengthened international cooperation and harmonization of transparency rules. Despite its favorable position, France must fill its regulatory gaps to avoid becoming a preferred target for criminal networks seeking alternatives to jurisdictions that are now more closely monitored.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.