A construction company involved in money laundering, the Albanian bought the land for 90,000 euros and sold it for 2.2 million euros

The Financial Intelligence Agency (AIF), in its recently published annual report, has uncovered one of the most sophisticated typologies of money laundering through the construction sector in Albania, highlighting the use of real estate as a mechanism for legalizing proceeds from criminal activity.

According to the report, the identified case involves an Albanian citizen, identified as citizen A, residing in a European Union country. In 2021, she invested in Albania through a family member, purchasing a plot of land worth 90 thousand euros, a price significantly lower than the real market.

Subsequent verifications showed that the money for the purchase of this property was deposited in cash, not only by citizen A and her family, but also by  citizen B , her ex-husband, also resident in the same EU country. This element raises strong doubts about the source of these funds.

Just two months after the purchase, citizen A signed a  venture contract  with a construction company in Albania, company Y , making the land available for development in exchange for construction profits. But the scheme does not end there. Just a year later, she sold the same land – already developed – to this same company for a value of around 2.2 million euros , suspiciously multiplying the initial price.

According to the AIF analysis,  the funds obtained from this sale were then transferred to another EU country, identified as “country V”, to the account of company X , established by citizen A herself immediately after receiving the amount. This company, with the object of activity of construction, has further concluded a new enterprise contract with a third company, company D , where part of the funds was transferred to the latter’s accounts as payment for construction services.

The investigation revealed that the representative of company D, an Albanian citizen, was previously employed by company Y in Albania, creating a direct link between all the actors involved in the scheme. Furthermore, this person turns out to be a shareholder in another construction company in country V, which is closely linked to company D.

From information obtained in cooperation with the Financial Intelligence Units of EU countries, it is suspected that citizen B is involved in  drug trafficking , and that part of his criminal proceeds were invested through this scheme in Albania, to be legalized and then withdrawn to other countries.

AIF emphasizes that this case contains a number of indicators of money laundering, including:

Cash deposits in the banking system for the purchase of real estate;
Initial investments below the real market value;
Immediate and unjustified increase in the value of the purchased property;
Numerous international transfers of funds to companies related to the individuals involved;
Indirect links between companies and individuals involved in the construction activity;
Suspicions of criminal sources of invested income.

Due to the complexity of the case and the well-founded suspicions of organized criminal activity in several countries, the case has been referred for further investigation to law enforcement agencies in Albania and international partners. /skyweb.al