The Real Estate Sector as a Nexus of Illicit Finance: Corruption-Driven Money Laundering in Pakistan

Abstract

The real estate market in Pakistan serves as a major way that money from crime gets moved to new places illegally. Our research probes legal corruption care practices that help money launderers work in the real estate market through techniques like dishonest documents, unreal property prices and cash deals without records. The study uses qualitative secondary data from academic sources plus newspapers and official FATF documents to understand this topic. The study shows how hawala/hundi remittance methods and political insider misuse of rules help money laundering happen. The research relies on basic beliefs about extensive cash-based illegal activities plus insufficient property and financial accountability oversight. The study shows how money laundering became rooted in the real estate sector because government employees accepted bribes and because organizations let people hide taxable income. The study shows that Pakistan reached FATF compliance but keeps finding weak spots when enforcing AML requirements in DNFBPs. The real estate market remains an essential money laundering path because digitalization, joint-agency cooperation, and fair court proceedings need better implementation. This research suggests practical policies and demands more study on digital land record systems as ways to fight financial crimes.

Keywords: Money Laundering, Real Estate Sector, Corruption, Informal Financial Systemsz, , Hawala/Hundi, FATF Compliance, Anti-Money Laundering (AML)