Consistent with global standards, the Financial Intelligence Agency of Liberia (FIA) has embarked on a series of proactive engagements with stakeholders to enhance Liberia’s AML/CFT compliance among Designated Non-Financial Businesses and Professions (DNFBPs) entities, with specific focus on Liberia’s Real Estate sector.
FIA recently held an interactive and collaborative meeting with stakeholders involved in real estate business transactions and sector regulatory agencies as part of the compliance engagements. Supervisory agencies in attendance included the Liberia Revenue Authority (LRA), the Ministry of Public Works, the National Housing Authority, and the Liberia Land Authority.
In his opening remarks, FIA Officer-in-Charge (OIC), Mohammed A. Nasser, underscored the need for competent authorities to take actionable measures to address deficiencies in the real estate sector. Mr. Nasser also noted that generally, the real estate sector is yet to come under full compliance with AML/CFT laws and regulations. He mentioned that the Real Estate sector’s compliance with AML/CFT regulations will go a long way in the ongoing global fight against money laundering, terrorist financing, and proliferation, with a positive triggered-down effect on Liberia’s revenue generation capacity.
This latest engagement by the FIA was triggered by the country’s 2022 Second Round Mutual Evaluation Report, released in 2023, which, among other things, highlights deficiencies in the real estate sector – including lack of regulatory requirements for disorganized agents, weak due diligence procedures, cash-based transactions and lack of relevant AML/CFT laws and regulations.
Mr. Nasser explained that similar concerns were also raised in the 2021 National Risk Assessment (NRA) conducted in all AML/CFT sectors in Liberia, which called on the FIA and other regulatory bodies to close these gaps identified in the Real Estate sector.
“The Real Estate sector is very vulnerable and unregulated for launderers, criminals, and enablers and as such, the FIA has formulated AML/CFT circulars and red flag indicators to be distributed to Regulated Entities (REs) for the promotion of anti-money laundering regulations and laws”, he noted.
“Real Estate Union, all construction companies, and other stakeholders are anticipated to be engaged by the FIA for the fight against money laundering and other financial crimes through training, issuance of questionnaires, and face-to-face interactions in selected counties – including Montserrado, Margibi, Grand Bassa, Bong, and Nimba,” the FIA OIC announced.
Meanwhile, Mr. Nasser has expressed concerns about what he termed “the increasing numbers of foreigners in Liberia’s lucrative Real Estate sector”, and frowned at Liberians who are allegedly involved in the practice of fronting for foreigners and high-profiled stakeholders in the real estate industry at the detriment of the sector.
“The forthcoming risk assessment in Liberia’s Real Estate sector requires coordination, cooperation, and increased public awareness among all competent authorities and other interest-holders in the sector; and the impending risk-based assessment exercise is an inclusive process that is projected to end in August of this year.
“Data collected from the risk-based assessment will be collated, analyzed, and utilized to inform a stakeholders’ review process by the FIA, as well as validation of the risk-based assessment report by all interest-holders in Liberia’s Real Estate sector.”, the FIA OIC stressed.
Accordingly, the FIA is poised to implement measures targeting the informal economic sector in Liberia, conduct enhanced due diligence procedures, promote transparency and record-keeping, etc.
In separate remarks, stakeholders, including the Liberia Revenue Authority (LRA), the Ministry of Public Works, and the National Housing Authority, expressed their commitments and willingness to work with the FIA for the professional and lawful regulation of Liberia’s Real Estate sector.