Uncovering Money Laundering Risks in Real Estate

The real estate sector is particularly susceptible to money laundering. Estrella Ríos Pérez, the president of the National Association of Business Lawyers (Anade) in Quintana Roo, cautions that insufficient guidance in this field can result in harmful practices, including tax evasion and transactions lacking legal certainty.

Ríos Pérez notes that one reason for these irregularities is the lack of guidance during land acquisition. It's not uncommon for purchases to be made in reserve areas or places with soil mechanics issues, leading to a series of hurdles that increase construction costs. She also points out that many buyers often bypass paying for specialized services, seeing them as an unnecessary cost rather than a valuable investment that ensures legal security.

The issue of money laundering in real estate is further complicated by the involvement of various parties including builders, developers, real estate agents, notaries, appraisers, and lawyers. This process, which transforms illicitly gained resources into seemingly legitimate funds, can encompass fraud, tax evasion, and breaches of environmental and urban regulations.

In an attempt to curb this, the Ministry of Finance and Public Credit (SHCP) has been integrating client or user identification files since 2017. The goal is to collect information that can be used to investigate and prosecute crimes linked to illicit operations. In Mexico, according to the Federal Penal Code, penalties for those involved can be as severe as 15 years in prison and fines of up to 5 thousand UMAS.

Ríos Pérez stresses the importance of those in the real estate sector understanding and adhering to regulations and laws to prevent falling into harmful practices. She warns, "Ignorance and omission can lead new companies or individuals to make grave errors that, in some cases, result in criminal charges."