Dubai's real estate a hotbed for money laundering
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Investigations are revealing that foreigners in Dubai investing in the housing market are laundering billions in illicit funds.
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Reporters discovered that Russian and European property owners in Dubai hold more than $31 billion of the total.
A recent data leak by the Centre for Advanced Defense Studies in Washington D.C., which shared its findings with E24, a Norwegian news outlet that coordinated an investigation into the Dubai real estate scene, has revealed the degree to which foreigners in Dubai are accused, convicted, or suspected of international crime while they possess property in the United Arab Emirates (UAE).
Over 20 additional publications, including OCCRP and several of its member centers, have joined the partnership in their efforts to uncover the criminals behind the Dubai-based properties. Dubai has long been renowned as a sanctuary for illegal financial operations, tax evasion, and money laundering, and it is a popular location for hiding money through real estate.
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The breach contained 800,000 properties held by 274,000 people and businesses from all around the world.
Reporters discovered that many had been subjected to international sanctions, had been convicted of crimes, or are under investigation.
The top foreigners with properties are Russians and Europeans. Several European legislators included in the probe have been accused of misusing public funds or failing to declare the full amount of their income and assets.
The analysis indicated that foreigners had spent more than $145 billion in Dubai's property sector based on available statistics. In London, another significant center for foreign-owned property, the prediction for 2019 was only $66 billion.
Reporters discovered that Russian and European property owners in Dubai hold more than $31 billion of the total.
The reporters investigated the properties of Slovak businessman Mirsolav Vyboh, who is on the run from corruption allegations and is thought to be hiding in the UAE.
The UAE is one of the top ten facilitators of corporate tax evasion and financial secrecy, according to the Tax Justice Network, an advocacy organization that tracks financial and tax evasion throughout the world.
"Dubai has ask-no-questions, see-no-evil approach to commercial and financial regulation, as well as foreign financial crimes,” the OCCRP said in a 2020 assessment. “It has consequently attracted large financial flows and some of the world’s most high-profile criminals."
Because the UAE lacks extradition treaties with the majority of the jurisdictions from where the owners originate, it is a perfect location for fraudsters to conceal their money. Wanted criminal suspects can so hide in Dubai and avoid prosecution in the countries where they committed crimes, while simultaneously profiting from the riches they embezzled or stole.
The UAE Embassy in Oslo is the only Emirati authority to have responded to journalists' demand for comment.
The Embassy stated that allegations made with regard to Dubai's property ownership are "factually inaccurate," detailing that "the UAE operates clear regulatory frameworks that comply with international laws and standards designed to combat financial crime."
Since its oil earnings fell in 2019, the UAE has relied on foreign investments by luring rich individuals from across the world to reside and invest in the nation. Dubai has a population of three million people, however, barely half of them are Emirati.
