5 CPD
Course Description
This course explains the money laundering risks in the real estate sector. Real estate sector has high ML risks, however, industry players often fail to appreciate and/or mitigate. It also explains why real estate is attractive to money launderers.
The real estate sector is an ideal medium for money laundering as transactions are generally of large value, a property is an investment that typically retains or gains value over time, and a property can be used as a physical base for further criminal activities. The price of real estate (compared to other assets) means that it provides an opportunity for large amounts of funds to be laundered at once.
This course also explains the three-stage of ML that is generally employed, however a 4th stage “Justification” was added by Van Koningsveld in 2013 in an effort to explain some of the more overt maneuvers that money launderers undertake.
It also analyses the four different dimensions of data that can be used in order to identify the suspicious combinations of characteristics produced by ML schemes, namely Buyer characteristics; Seller characteristics; Financing characteristics; and Property level data.
In addition, this seminar lists the money laundering and terrorism financing (ML/TF) risks associated with the real estate sector and analyses in detail the techniques used to launder money (typologies) in real estate and for each typology states the relevant indicators.
It is also explains and analyses the 10 main problems that have enabled corrupt individuals and other criminals to easily purchase luxurious properties anonymously and hide their stolen money and explains the measures that are recommended to establish an effective system to detect and prevent money laundering through real estate and to comply with international commitments such as the FATF Recommendations.
In addition, this section also analyses the steps real estate agents can take to comply with AML standards and reduce the risk of falling foul of money laundering regulations
This seminar applies not only to professionals that operates within the real estate sector and are involved in transactions for clients concerning the buying and selling of real estate, but also to other obliged entities and professionals like notaries, lawyers, lenders, property value assessors – when these professionals engage in interactions or functions related to the buying and selling of real estate. These professionals are broadly referred to as real estate professionals and other DNFPBs. The seminar also applies to real estate developers, who may carry out similar activities to those described above – including the sale of property.
Topics covered
The course is split into the following sections:
Section 1: Introduction to money laundering in the real estate sector
- Overview
- How big is the problem?
- Why Is Real Estate Attractive to Money Launderers?
Section 2: Stages of Money Laundering in Real Estate
- Introduction
- Stage 0: Sources of proceeds of crime
- Stage 1: Placement of criminal income
- Stage 2: Layering to mask the origins of funds
- Stage 3: Justification to create a legal appearance
- Data flow of Money laundering in the real estate sector
- Investment of clean funds
Section 3: Real Estate M/TF risk and money laundering Typologies
- Real Estate – ML/TF risks
- Typologies
- Third-party purchases
- Unlawfully obscure beneficial ownership
- Money laundering through loans or mortgages
- Quickly convert dirty funds into a real estate asset
- Flip houses to turn dirty funds into clean funds
- Hide capital in other jurisdictions
- Purchasing property for criminal use
- Launder money through cancelled real estate transactions
- Acquire an income source and mix in dirty money
- Use of professional facilitators or ‘gatekeepers’
- Miscellaneous indicators
Section 4: Main problems – Key Recommendations – How to Comply
- 10 main problems that have enabled corrupt individuals and other criminals to easily purchase luxurious properties anonymously and hide their stolen money
- Key Recommendations to detect and prevent money laundering through real estate
- How to Comply with AML Standards
Section 5: Red Flags
- Introduction
- Common red flags
- Red flags for real estate sale and purchases
- Red flags associated with payments for real estate
- Red flags for commercial leasing
Customer risk red flags - Red flags specific to vendors
- Red flags specific to purchasers
- Difficulty of Verification and Inconsistency of Information
- Willful blindness
Course Duration:
This course may take up to 5 hours to be completed. However, actual study time differs as each learner uses their own training pace.
The course is addressed to:
This course is addressed to all individuals who practice Anti-Money Laundering or interested to learn or enhance their knowledge in Money Laundering such as:
- Compliance/AML Managers and staff in Banks, Investment Firms, Investment Funds, ASPs, Trust Service Corporate Providers, Accountants, Auditors, Lawyers, real estate professionals and real estate agents.
- Employees of Banks, Investment Firms, Investment Funds, ASPs, Trust Service Corporate Providers, Accountants, Auditors, Law Firms and real estate professionals who are involved or interested to learn or enhance their knowledge in Money Laundering.
- Executive Directors, Non-executive directors, Senior Managers, Compliance Officers, Risk Managers, Product Managers, Portfolio Managers, Investment Advisors, Dealers, Marketing Managers, real estate professionals and in general employees of investment firms, funds, ASPs, Law firms, Accountants, Auditors and real estate firms.
- Internal Auditors
- Consultants
- Lawyers
It is also suitable to professionals pursuing CPD in Anti-Money Laundering for the renewal of CySEC Certificate (CySEC Basic or CySEC Advance Certificate or CySEC AML Certificate) or other relevant certificates in other jurisdictions.
Training Method
The course is offered fully online using a self-paced approach. The learning units consist of power point presentations. Learners may start, stop and resume their training at any time.
At the end of the course, participants take a Quiz to complete the course and earn a Certificate of Completion once the Quiz has been passed successfully.
Accreditation and CPD Recognition
The course can be accredited by regulators and other bodies for 5 CPD Units that require CPD training in Anti-Money Laundering. The course may be also approved for up to 5 CPD Units by institutions that approve general financial and AML training, such as the CySEC, ICPAC, CBA, CISI, ICA and ACAMS.
Eligibility criteria and CPD Units are verified directly by your association or other bodies in which you hold membership.
Registration and Access
To register to this course, click on the Take this course button to pay online and receive your access instantly. If you are purchasing this course on behalf of others, please be advised that you will need to create or use their personal profile before finalizing your payment.
Access to the course is valid for 90 days.
If you wish to receive an invoice instead of paying online, please Contact us by email. Talk to us for our special Corporate Group rates.
Instructor
George Papanicolaou has more than 20-years experience in the Financial industry. He worked for several years in managerial positions as area Manager, Head of Brokerage, Compliance Officer, Anti Money Laundering Officer, General Manager and Executive Director in Cypriot Investment Firms as well as Managing Director of GP GLOBAL LTD offering consulting services and training courses to Investment Firms, focuses in Internal Audit, compliance & AML issues. He offered numerous courses/seminars both in Cyprus and abroad in Investment Firms Law as well as in Compliance & Anti Money Laundering. George Papanicolaou is also a Chairman of a Nomination Committee in a company listed in the Oslo Stock Exchange.
George Papanicolaou holds a BSc in Electronic Engineering from the University of Texas at Austin (USA), an MBA with specialization in Finance from Leicester University (UK) and a Postgraduate Certificate in the Mechanics of Risk Management from Middlesex University (UK).
He also holds an ICA International Diploma in Anti Money Laundering from the International Compliance Association and the University of Manchester, as well as an Advance and Money Laundering certificate from the Cyprus Securities and Exchange Commission for the provision of investment services/activities.
He is a Member of the AML and Compliance Committee of the Institute of Certified Public Accountants of Cyprus (ICPAC), Fellow of the International Compliance Association (FICA), Mentor of ICA new students, member of the Cyprus Institute of Internal Auditors and the first Network chair for Cyprus of the International Compliance association.
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