The British Columbia (BC) government released reports which detail the findings of two in-depth reviews of suspected money laundering activities in BC's real estate market, according to a release from the Appraisal Institute of Canada (AIC). The AIC-BC said it welcomed the reports and is committed to supporting initiatives that help eliminate and prevent money laundering in BC’s real estate sector.
Appraisers are unique among almost all the players involved in a real estate transaction in that they do not have a vested interest in the sale price or outcome of the transaction, the release said.
“AIC-BC has made its position clear: Illegal funds have no place in BC’s real estate market and we are supportive of the government’s investigations into money laundering and real estate, having actively participated in review process on money laundering,” AIC-BC President Graham Held said in the release.
In January, a submission was made to the Expert Panel on Money Laundering in BC Real Estate. The submission included several recommendations including ensuring that prudent underwriting guidelines that assess both the borrower’s creditworthiness and the value of the collateral.
More recently, AIC-BC joined other organizations representing key professions in the BC real estate sector to submit joint recommendations to the provincial and federal government to help protect BC’s housing market from money laundering.