Ningo-Prampram legislator, Sam Nartey George has alleged that the real estate industry in Ghana is a hoax used to cover up money laundering activities happening in the country.

The Anti-Money Laundering Act defines money laundering as engaging in any transaction that involves proceeds of a crime, with the intent to conceal the illegal origin of such funds or to help a person involved in criminal conduct to evade legal consequences.

The MP made the allegations while contributing a conversation hovering around the millions of dollars and cedis looted from the home of the Sanitation Minister, Cecilia Dapaah on JoyNews' Newsfile on Saturday, July 22.

He based his allegation on the exorbitant prices of houses built by real estate companies. According to Mr Nartey George, he finds it outrageous that a house is sold for half a million dollars in Ghana.

"The real estate business in Ghana is money laundering. The cost of real estate in Ghana is not justifiable by any stretch.

You keep seeing all these new high-rise buildings going up and they are selling them for half a million dollars and they keep buying among themselves," he said.

Explaining how alleged money laundering works in the real estate business, he stated that several parties in the industry engage in buying and selling in order to convert their "dirty money" into "clean money."

"So I have dirty money to clean, I put up a real estate property. You also have dirty money, you come and buy the property from me then automatically, your money becomes clean. Then tomorrow you also start building your own then I come back and buy and we are just cleaning the money," he stated.

According to the Ningo-Prampram MP, much has not been done to halt such activities due to a decision by authorities allow such actions continue.

"If our authorities want to deal with it, they will deal with it," he noted.

The key legislation governing money laundering in Ghana is the Anti-Money Laundering Act, 2008 (Act 749). Additionally, the Financial Intelligence Centre Act, 2008 (Act 768) and the Narcotics Control Commission Act, 1990 (PNDCL 236) are also relevant in the fight against money laundering.

Per the Anti-Money Laundering Act, a person commits an offence of money laundering if the person knows or ought to have known that property is or forms part of the proceeds of unlawful activity and the person:(a) converts, conceals, disguises or transfers the property,(b) conceals or disguises the unlawful origin of the property, or(c) acquires, uses or takes possession of the property.

A person found culpable and is liable on summary conviction to a fine of not more than five thousand penalty units or to a term of imprisonment of not less than twelve months and not more than ten years or to both.

Source: The Independent Ghana