UGANDA, Kampala | Real Muloodi News | The Association of Real Estate Agents Uganda (AREA-U) is hosting a special virtual event this Friday 28th on the topic; Counterfeit and Money Laundering in Real Estate.
Money laundering through real estate integrates the illegal proceeds of crime into the legal economy. Criminals, after camouflaging the origin of the money used for payment for the real estate assets, are left to to enjoy the safety of their investments.
However, the socio-economic effects of money laundering on the legal economy, society and the real estate industry are enormous.
Money laundering in real estate often involves manipulation of the appraisal or valuation of a property (undervaluation, overvaluation and successive sales at higher values), which in-turn distorts actual market trends and falsely inflates property prices. It also introduces unfair competition which further drives up property prices. As a result, people with legal sources of funds are priced out of the market.
The impact is felt not only by those people rendered unable to purchase housing, but also renters. In both cases, choices about where to live can be impacted, resulting in a change of neighbourhood and the displacement of less affluent households.
In a recent interview, Hon Beti Kamya, former Minister of Lands and Uganda’s current Inspector General of Government (IGG), explains that in Uganda, most of the proceeds of corruption goes into real estate, with the construction industry being the fastest growing sector in the country at 12% annual growth.
And while some may think that money diverted to building a house isn’t so bad because the money stays in the economy and is directed to buying materials like cement, and hiring masons, builders, etc., that money is diverted away from priorities and into unplanned growth.
“We know that most of the corruption money goes into the construction industry, but it should go toward planned development, planned so that it benefits everybody, and not just the few,” Hon Kamya says.
Tune in on Friday, 28th January at 10am to hear guest speaker Brenda Mahoro, an experienced commercial lawyer and government expert, who is the Legal and Corporate Affairs Manager, Financial Intelligence Authority discuss the topic in greater depth.
You can access the event on Zoom, Meeting ID: 98064085865 and Passcode: Excel.
READ MORE LIKE THIS:
Most Proceeds of Corruption Goes into Real Estate – IGG Beti Kamya
The Sentry Advisory Highlights Money Laundering Risks in African Real Estate
