Four AML/KYC challenges for property professionals
Cross-border capital flows continue to shape European real estate. Southern markets such as Spain, Portugal, and Cyprus remain attractive thanks to their climate, lifestyle, and visa opportunities. But the same dynamics that draw legitimate investors also attract heightened scrutiny from regulators.
Those working in the real estate sector are on the frontline of these changes, and it is imperative you understand the risks, and how to address them. We have identified four of the most common challenges.
1. Rising scrutiny from the EU
The EU has moved decisively to curb the use of real estate for laundering illicit funds, including proceeds of war. Citizenship-by-investment schemes are facing intense scrutiny, particularly after the EU Court of Justice ruling in April 2025 that ended Malta's ‘golden passport’ program, and new directives are forcing greater transparency across transactions.
For estate agents and lawyers, this means that the comparatively light-touch AML and KYC checks of the past are no longer viable. Stringent checks are now a core part of safeguarding deals.
2. National-level reforms
Individual countries are going further. In Spain, for example, new laws require not only developers and agencies but also advisors and non-EU entities with EU property interests to disclose detailed ownership information. Transactions involving cash above €100,000 now require pre-approval from the Commission for the Prevention of Money Laundering.
This means your clients will need to provide more documentation than before, and you must be ready to explain and manage these requirements early in the process.
3. Ultimate Beneficial Ownership (UBO) transparency
Across Europe, authorities are tightening requirements for identifying the ultimate beneficial owners behind property purchases. Registers are expanding, and regulators expect property professionals to go beyond surface-level checks to establish who is really behind a transaction.
This in turn requires rigorous due diligence procedures and systems capable of validating complex ownership structures, particularly when offshore vehicles are involved.
4. Sanctions and politically exposed persons (PEPs)
With geopolitical tensions high, sanctions lists are expanding rapidly and enforcement is becoming stricter. At the same time, transactions involving politically exposed persons attract closer examination and higher reporting standards.
For those advising on deals, this means sanctions and PEP screening must be integrated into onboarding from the outset, with reliable systems that update in real time and can demonstrate compliance if challenged.
Why this matters
Real estate remains one of the largest asset classes targeted by criminals seeking to launder funds. As regulation intensifies, property professionals who adopt secure, tech-enabled processes will be best placed to protect clients, keep deals on track, and maintain trust.
At Redpin, we’ve built a secure, purpose-built payments platform that streamlines cross-border real estate transactions. At the heart of our solution is robust AML/KYC support, backed by multi-factor authentication, encrypted data handling, real-time payment tracking, and centralised audit trails, helping you to stay compliant, reduce risk, and deliver a seamless experience for their clients. Speak to one of our experts today to learn more.
