Panel econometric analysis reveals lower house prices in OECD countries with stronger anti-money laundering rules, suggesting illicit capital inflates property markets.
The debate over the impact of money laundering on real estate prices has become a pressing issue in recent years, particularly in developed economies. The aim of this study is to examine the relationship between anti‐money laundering (AML) regulations and house prices in a sample of OECD countries over the period 2012–2023. Using panel fixed effects, two‐stage least squares (2SLS), and the GMM regressions, while controlling for key macroeconomic determinants of house prices, the findings show that house prices are lower when AML regulations are stronger.
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Gholipour et al. (2026) studied this question.
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