Factors That Lead to Money Laundering in the Real Estate Sector Based on the Financial Action Task Force Standards

Abstract

The study aim was to identify factors that lead to money laundering in the real estate sector based on the Financial Action Task Force Standards. A descriptive cross-sectional study was conducted and both quantitative and qualitative data were collected to better understand the money laundering in the real estate sector in a bid to address the factors that lead to money laundering. Simple random sampling and purposive sampling were used in this research. SPSS was used to analyse the quantitative data and the qualitative data was transcribed and analyzed based on the recurring themes. The study results are that effective AML in the real estate sector relies on the AML training and effective Internal Controls by real estate agents. The results presented a p-value of 0.008 which was less than 0.05. This indicated that the model was statistically significant in explaining the impact of the independent variables on the effectiveness of AML in the real estate sector in Zambia.