The Ghana Real Estate Developers Association (GREDA) has admonished government to adopt an innovative way in fighting illicit money flows in the country’s real estate sector.

The call comes following indications that the real estate sector was gradually becoming a haven for money laundering activities.

But Executive Secretary of GREDA, Samuel Amegayibor believes these illicit money flows if not properly checked has the ability to affect foreign direct investments and collapse the real estate sector.

“Those people who are into money laundering are creeping into our sector and when a genuine businessman wants to secure a loan from a Western country, because Ghana may be seen to be harbouring launders, the application can be rejected. So, it’s going to affect foreign direct investment flow into the country if we don’t work on it because they are going to screen us with eagle eyes to ensure that this money that’s being given to us is not going into terrorism financing,” he told Citi Business News in an interview monitored by GhanaWeb.

Amegayibor advised, “So we have to open our eyes. And it falls under the Ministry of Works and Housing because the law that is supposed to regulate the activities of real estate is the one which has just been passed, which is the Real Estate Agency Act 2020, Act 1047,”.

Meanwhile, to regulate the practice and activities of the real estate sector, government in November 2020 passed into law the Real Estate Authority Act 2020.

The Act will check the conduct of real estate practitioners on the commercial and sale activities of real estate purchases, leasing and rent.