Beware mortgage money laundering–yes, it’s a thing
The government financial fraud intelligence unit Austrac is warning borrowers and banks that criminals are using mortgages and real estate as a “significant money laundering channel”.
Authorities recovered or restrained $86 million in criminal assets in 2012/13, including real estate.
Criminals can pay cash for all or part of a real estate asset, disguising the real price and the real owner. Or they can purchase overvalued properties, allowing them to get larger mortgages and launder more money via repayments. Money laundering is also achieved via fake rental payments.
Source: Mortgage Business