About usServicesOur clientsAMLI LabsBlogContact
Login
About us
Services
Our clients
AMLI Labs
Trainings
Blog
Login
Contact
Back

AML Compliance Services for Real Estate Agents and Brokers

Why AML Compliance Matters for Real Estate Brokers

The real estate sector is one of the highest-risk industries for money laundering. Criminals use high-value properties to move illicit funds, often structuring transactions to evade detection. Regulators worldwide, including FinCEN (USA), FATF, and FINTRAC (Canada), mandate strict AML compliance for real estate professionals.

Failure to comply can result in:

Hefty fines and legal penalties

License revocation and reputational harm

Increased regulatory scrutiny

By implementing a strong AML compliance program, real estate brokerages can reduce risk, prevent fraud, and protect their business from legal liabilities.

AML Compliance Services for Real Estate Professionals

AML Incubator provides customized AML compliance solutions for real estate brokers, agents, and firms. AMLI services include:

Risk-Based AML Program Development

AMLI helps brokerages design and implement AML policies that align with regulatory requirements.

Know Your Customer (KYC) & Due Diligence

AMLI solutions ensure proper client verification, including enhanced due diligence (EDD) for high-risk clients.

Transaction Monitoring & Suspicious Activity Reporting (SARs)

Detect and report potential money laundering activities before they become a legal issue.

AML Compliance Audits & Risk Assessments

Identify vulnerabilities in your compliance framework and ensure ongoing regulatory adherence.

AML Training for Real Estate Professionals

Equip your agents and brokers with the knowledge needed to recognize and report suspicious transactions.

The Growing Risk of Money Laundering in Real Estate

Real estate is a prime target for criminals looking to launder illicit funds.

High-value transactions make it easy to move large sums.

Complex ownership structures (shell companies, trusts) obscure true beneficiaries.

Cash purchases and third-party transactions reduce traceability.

Regulatory agencies are cracking down on real estate firms that fail to implement AML controls. In many jurisdictions, real estate professionals are required to verify client identities, assess risks, and report suspicious transactions.

Stay ahead of evolving regulations with AML Incubator’s expert guidance.

AML Requirements for Real Estate Agents

To remain compliant, real estate brokers and agents must meet key AML obligations, which often include:

Customer Due Diligence (CDD)

Customer Due Diligence (CDD)

Verify the identity of buyers and sellers, understanding the nature of real estate transactions through thorough due diligence.

Know Your Customer (KYC) Procedures

Know Your Customer (KYC) Procedures

Implement KYC procedures, collecting and verifying client information, including identification documents, business relationships, and transaction purposes.

Transaction Monitoring

Transaction Monitoring

Implement systems to monitor real estate transactions, investigating unusual or suspicious activities, such as large unexplained transactions or complex structures.

Reporting Suspicious Transactions

Reporting Suspicious Transactions

Obligatory reporting of suspicious transactions to authorities in compliance with applicable laws.

AML Training

AML Training

Conduct ongoing training programs for real estate agents and brokers on money laundering risks and compliance procedures.

Record Keeping

Record Keeping

Maintain detailed records of transactions and customer information, crucial for AML compliance, audits, and investigations.

Risk Assessment

Risk Assessment

Periodically assess money laundering risks associated with different transactions, clients, and locations.

Compliance Officer

Compliance Officer

Designate a compliance officer to oversee AML efforts and ensure adherence to relevant laws and regulations.

Sanctions Screening

Sanctions Screening

Screen clients against government watchlists to prevent involvement in sanctioned activities.

Third-Party Relationships

Third-Party Relationships

Assess AML compliance practices of business partners (e.g., title companies, financial institutions) to prevent inadvertent facilitation of money laundering.

Legislation Compliance

Legislation Compliance

Stay informed about AML laws at local, state, and federal levels, aligning policies and procedures accordingly.

AML Incubator Is Your Trusted Partner in AML Compliance for Real Estate

AML Incubator, specializes in helping real estate firms stay compliant while minimizing risk. Whether you run a small brokerage or manage large-scale transactions, AML Incubator’s AML services ensure full regulatory adherence and protect your business from financial crime.

High-Risk Transactions in Real Estate and How to Mitigate Them

The real estate sector remains a prime target for financial crime, with high-risk transactions often facilitating money laundering, fraud, and illicit financial activities. Without proper AML controls, real estate brokers and agents may unknowingly enable criminal activity, putting their businesses at legal and financial risk. Identifying red flags and implementing robust risk mitigation strategies is essential for ensuring compliance and safeguarding the industry.

What types of real estate transactions are considered high-risk?

All-cash purchases from anonymous buyers or shell companies.

Frequent property flipping with unexplained rapid resales.

Unusually high-value transactions with no clear source of funds.

Cross-border real estate purchases involving high-risk jurisdictions.

Third-party transactions where the buyer and payer are different entities.

Luxury property purchases by politically exposed persons (PEPs).

Why Choose AML Incubator?

Enhanced Due Diligence (EDD) to identify beneficial owners.

Transaction monitoring to flag suspicious patterns.

AML training for real estate professionals to recognize red flags.

Industry Experts that have deep expertise in real estate AML compliance.

Custom AML programs designed for your specific needs.

Proactive Risk Mitigation to identify threats before they become compliance violations.

KYC & Customer Due Diligence (CDD) in Real Estate

Real estate transactions involve significant financial exchanges, making the industry a high-risk target for money laundering. Implementing robust Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures helps prevent illicit funds from entering the property market. Regulatory bodies worldwide require real estate brokers, agents, and property managers to verify client identities, assess risks, and monitor transactions for suspicious activity.

Key KYC & CDD Requirements for Brokers:

Identity verification – Collect government-issued IDs and proof of address.

Source of funds checks – Ensure funds originate from legal sources.

PEP & sanctions screening – Identify politically exposed persons and restricted parties.

Ongoing monitoring – Detect changes in client behavior that may indicate risk.

Frequently asked questions

What penalties do real estate brokers face for non-compliance?

Failure to comply with AML regulations can result in:
  • Heavy fines from financial regulators.
  • License suspension or business restrictions.
  • Reputational damage and loss of client trust.

How often should real estate brokers update their AML policies?

Real estate brokers should update their AML policies at least once a year to ensure they remain compliant with evolving regulations and industry best practices. However, updates should also be made whenever there are significant regulatory changes, new emerging risks in real estate transactions, or shifts in the business structure that require enhanced compliance measures.

What is the role of Ultimate Beneficial Owner (UBO) verification?

UBO verification helps identify the true owner behind corporate or trust-owned real estate purchases. Criminals often use complex structures to hide their identities, so brokers must conduct UBO screening to prevent fraud and money laundering.

Are international real estate transactions subject to stricter AML regulations?

Yes, international transactions often require heightened due diligence, especially when dealing with buyers from high-risk countries. Real estate brokers must verify the source of funds, conduct thorough background checks, and screen clients against global sanctions lists. Compliance with international AML frameworks, such as FATF guidelines, ensures that cross-border transactions do not facilitate illicit financial activities.

contact us

Whether it’s to discuss your next project, learn more about our services, or join our team, drop us a line and get the conversation started.

You agree to our Terms of Service and Privacy Policy

Let’s talk

Contact

Haik Kazarian

Head of Business Development

This is a discovery call to help us assist you. Please share any details about this meeting that will help us prepare.

Book a call
LogoLogo

Quick links

Socials

Contact

© AML Incubator™ 2025 all rights reserved