AMLA Warns Illicit Property Investment Can Push Up Housing Prices

Money laundering through real estate can contribute to higher housing prices by adding illicit demand to already pressured markets, the head of the EU’s Anti-Money Laundering Authority (AMLA) has warned.

Speaking at a joint hearing of the European Parliament’s ECON and LIBE committees on July 15, AMLA Chair Bruna Szego described real estate as one of the highest-risk areas of the non-financial sector.

Property can absorb substantial sums in a single transaction, while purchases made through companies, holding structures, and cross-border chains of entities can obscure the identity of the ultimate beneficial owner. Inconsistent valuation practices may also make it easier to justify prices that do not reflect a property’s true value.

Szego said economic models and evidence indicate a correlation between money laundering and rising housing prices. Illicit funds create additional demand, potentially placing pressure on prices.

AMLA is now developing a common risk-assessment methodology and supervisory handbook for national authorities monitoring estate agents, notaries, lawyers, accountants, and other professionals involved in property transactions.

These “gatekeepers” play a central role in identifying beneficial owners, examining the source of funds, and reporting suspicious activity. However, their responsibilities and the level of supervision differ considerably among EU member states.

AMLA plans to align these practices through common guidance, thematic reviews, and peer comparisons, with scrutiny focused on high-risk scenarios and opaque ownership.