In this edition of Fincrime Files, the AFC community dives deep into key scenarios under Real Estate-Based Money Laundering:

1. Shell Company Pre-Sale Property Acquisition and Flipping Criminals use newly incorporated shell companies with nominee directors to receive fragmented cross-border transfers and channel the funds into pre-sale property purchases. Units are later assigned or flipped before completion, creating apparent capital gains that legitimise illicit wealth as property investment returns.

2. Corporate Embezzlement Laundered Through Developer Stage Payments and
Related-Party Loan Structuring Misappropriated corporate funds are layered through intermediary accounts and introduced into private holding companies linked to family members. These funds are then used for staged developer payments, supported by shareholder loan documentation and later reinforced through rental income and refinancing activity.

3. Illicit Proceeds Recycled Through Inflated Renovation Contracts and Rental Deposit Layering Properties are acquired through seemingly legitimate means, after which laundering shifts to post-acquisition activity through inflated renovation invoices, fabricated contractor payments, and excessive rental deposits or advance payments. These transactions help disguise illicit funds as property enhancement and rental income.

4. Short-Term Rental Platform Laundering Through Fabricated Occupancy and
Circular Guest PaymentsCriminals use short-term rental properties to simulate legitimate hospitality incomeby generating bookings through controlled or related accounts. Repeated bookings, cancellations, refunds, and rebookings help layer illicit funds while creating the appearance of genuine rental activity.