Real estate is attractive for ML because

Real estate is attractive for ML because

• A. It can be purchased only with cash.
• B. It is alluring because it is always highly liquid.
• C. It can be purchased with cash, the ultimate beneficial ownership can be disguised, it is relatively stable and value may be increased.
• D. Property values cannot be increased after purchase.

Answer: (C)

Real estate attracts illicit funds because its features support moving and disguising large sums while giving a tangible asset that can grow in value. It allows funds to be placed into a real asset, including through cash purchases or financing, which can help integrate cash into legitimate-looking holdings. Using property through corporate vehicles, trusts, or nominees can obscure who ultimately owns it, making it easier to hide beneficial ownership. At the same time, real estate is typically a relatively stable asset with potential for price appreciation, providing a credible way to convert illicit funds into a legitimate asset and later realize value from it. The other options miss key points: insisting on cash-only purchases is inaccurate since financing is common; claiming real estate is always highly liquid ignores the usual time needed to sell property; and saying property values cannot rise is simply incorrect, as values can and do increase in many markets.

Real estate attracts illicit funds because its features support moving and disguising large sums while giving a tangible asset that can grow in value. It allows funds to be placed into a real asset, including through cash purchases or financing, which can help integrate cash into legitimate-looking holdings. Using property through corporate vehicles, trusts, or nominees can obscure who ultimately owns it, making it easier to hide beneficial ownership. At the same time, real estate is typically a relatively stable asset with potential for price appreciation, providing a credible way to convert illicit funds into a legitimate asset and later realize value from it.

The other options miss key points: insisting on cash-only purchases is inaccurate since financing is common; claiming real estate is always highly liquid ignores the usual time needed to sell property; and saying property values cannot rise is simply incorrect, as values can and do increase in many markets.