Real estate is a classic money-laundering channel — not only in Vietnam but worldwide. This article answers: why real estate is easily exploited → the common methods → how the law handles them (criminally, and through preventive measures specific to the real estate sector).
1. Why is real estate a classic money-laundering channel?
The national money-laundering risk assessment for 2018–2022 identified 17 sectors exposed to money-laundering risk, with real estate rated high risk (announced at a conference on anti-money laundering in the real estate sector organised by the Ministry of Construction). This is an analytical assessment based on market characteristics, not a rule quoted from a statute:
- Large values: a single real estate transaction can “legalise” a very large amount of criminal proceeds at once;
- Flexible valuation: property prices can easily be inflated above or depressed below true value, leaving room for abnormal transactions;
- Nominee ownership: property can be registered in another person’s name, hiding the true owner;
- Liquidity and long-term holding: property can be sold quickly to create a “clean” transaction chain, or held long-term as a store of value.
2. Common methods
The description below covers typical patterns of conduct (not specific cases; no real individuals or organisations named):
- Buying real estate with criminal proceeds to “legalise” them — criminal assets converted into property with lawful ownership documents;
- Inflating or deflating prices versus market value: “two-price” deals — a low contract price to evade tax, with the difference paid in cash; or inflated prices to “launder” through the spread;
- Authorisation transactions without a legal basis: using powers of attorney to hide who truly controls the transaction;
- Nominee ownership, purchases through third parties: having another person hold title, or using “shell” companies to buy and sell;
- Rapid flipping: creating a chain of successive transactions to distance the money ever further from its original source.
3. Criminal handling: Article 324 applied to real estate scenarios
These methods, where the constituent elements are met, are prosecuted under Article 324 of the Penal Code — in particular:
- Point b, Clause 1 (“using money or property obtained through crime… in conducting business or other activities”) — using criminal proceeds to buy real estate;
- Point c, Clause 1 (“concealing information on origin, true nature, location… or obstructing verification”) — nominee ownership, hiding the true owner;
- Point d, Clause 1 — the above acts against property that has undergone transfer, assignment or conversion (rapid flipping chains).
Legal entities (e.g. “shell” real estate companies) bear criminal liability under Articles 75 and 76 and Clause 6 of Article 324. The predicate offence (the crime that generated the original funds) is handled independently of the money-laundering offence.
“Two-price” contracts: both tax evasion and a potential laundering link
A two-price contract is both tax evasion (Article 200 of the Penal Code) and potentially a link concealing the money’s source in a laundering chain. The tax authority transfers the file to the investigative authority where signs of a crime exist (cross-check the article number in the Law on Tax Administration 108/2025; do not cite an article number not cross-checked).
4. Real-estate-specific prevention
4.1. Real estate businesses are “reporting entities”
Under point b, Clause 2 of Article 4 of the Law on Anti-Money Laundering 14/2022, real estate businesses (excluding leasing, sub-leasing and real estate consultancy) are reporting entities → they must report suspicious transactions (Article 26) and large-value transactions of VND 400 million or more (Article 25), observe the deadlines in Article 37; the reporting regime follows Circular 27/2025/TT-NHNN. Failure to report → administrative sanctions under Decree 340/2025/ND-CP (for reference: Article 77 of Decree 339/2026/ND-CP also provides AML-specific sanctions for the real estate sector of VND 40–80 million — cross-check the verbatim text before applying).
4.2. Four suspicious signs in the real estate business sector (Article 33)
Article 33 of the 2022 Law on Anti-Money Laundering provides four sector-specific suspicious signs (cross-checked verbatim):
- An authorisation transaction without a legal basis;
- The customer is unconcerned about the property price or transaction fees;
- The customer fails to provide or refuses to supplement information on the property or on his/her identity;
- The agreed price is inconsistent with the market price.
4.3. Mandatory payment through banks — narrow scope
Clause 2, Article 48 of the Law on Real Estate Business 29/2023/QH15 (effective 1 August 2024): project developers, real estate businesses and real estate service businesses receive contractual payments from customers through accounts opened at domestic credit institutions or foreign bank branches lawfully operating in Vietnam.
The scope is narrow: the rule does not apply to individuals buying and selling with each other for non-business purposes or on a small scale — do not write “all real estate transactions must be by bank transfer”. Also do not assert a figure such as “house purchases from VND 300 million must be by transfer” — this figure is unverified and prohibited.
4.4. New administrative sanctions
Clause 3, Article 66 of Decree 339/2026/ND-CP (on administrative sanctions in construction investment and real estate business, effective 26 August 2026 — cross-checked verbatim): a fine of VND 240–300 million on developers, real estate businesses and real estate service businesses that receive payments outside bank accounts. Accompanied by a remedial measure (point a, Clause 7 of Article 66): compelling the subsequent payment instalments to go through banks where a contract is being performed.
5. Notes on effectiveness and asset confiscation
The Law on Anti-Money Laundering 14/2022 is in force; Law 23/2026/QH16 takes effect on 1 December 2026 (not yet in force) — noted only, not applied early. On the handling of crime-derived assets (confiscation), see the dedicated article on asset confiscation.
Reference information only — not legal advice. Real estate businesses should correctly identify the four suspicious signs in Article 33 and comply with bank-payment duties to avoid legal risk.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.
