Senegal: Increasingly more real estate financing done outside banks, according to a study

Sep 19, 2014

Real estate financing in Dakar is increasingly happening outside the banking system, a new study reveals.

Real estate financing in Dakar is increasingly
happening outside the banking system, a new study reveals.

Led by former Magistrate Alioune Ndiaye, the study
focuses on the risks associated with money laundering in connection with the financing of real estate.

"Today, regarding the real estate under construction in Dakar, surveys estimate that Cfaf240 billion (€365.9 million) is flowing into the building (…) but there is a traceability of only ten billion," according to the report, quoted by the Senegalese Press Agency.

The document claims the ongoing construction boom and the high prices of goods are unrelated to the performance of the real economy of Senegal, which "suggests that there is more and more illicit money in circulation in Senegal and that money launderers use the real estate sector to hide these funds."

The study also highlighted shortcomings and failures in the legal, institutional and organisational framework for the fight against money laundering in the real estate industry.

It concludes that the fight against money laundering requires a systemic approach that takes into account all aspects of money laundering risks, and that it should be based on interoperability of the information systems of the various entities involved in this fight.ADNFCR-2976-ID-801749462-ADNFCR