Authors: Maame Abenaa Adoma Fosu
Senior Associate | Head: Land, Construction, and Real Estate
Justice Minkah Oppong
Lawyer Land, Construction & Real Estate
Ghana’s real estate industry sits at the heart of its economic development, with population growth and rapid urbanization driving an intense demand for housing and commercial property, particularly in its major cities, Accra and Kumasi. Beneath this growth is a fragile system plagued by fraud, money laundering and tax evasion[2]. As a solution, and to satisfy the need for adherence to international standards for the prevention of money laundering and the enforcement of anti-corruption initiatives[3], the Real Estate Agency Act, 2020 (Act 1047) was passed.
Before Act 1047, Ghana’s real estate sector was mostly unregulated, allowing anyone to operate as an agent or broker without qualifications or accountability. The 2018 National Risk Assessment identified real estate as a highly vulnerable DNFBP[4], due to limited regulations, weak supervision, poor client due diligence, lack of fund inquiries, and the cash-heavy nature of the business[5].
Act 1047 introduced key institutional and compliance mechanisms including the establishment of the Real Estate Agency Council (REAC) to oversee licensing and professional conduct for agents and brokers[6], introduction of cashless transaction requirements[7] and the imposition of quarterly anti-money laundering reporting duties on practitioners[8]. These measures are intended to formalize industry practice and improve transparency in transactions. However, the Act has had little to no impact since its incorporation in 2020 due to slow implementation and enforcement.
Although REAC’s board was established in November 2021, its headquarters did not become operational until April 2024, leaving real estate transactions during that period unsupervised. Registration and licensing of practitioners only began in July 2025. Despite the Act’s anti-money laundering measures—such as banning cash payments, requiring client trust accounts, and mandating transaction reporting—these rules have not been enforced. As a result, nearly six years later, the sector continues to facilitate illicit financial flows and fraud, with consumers still lacking adequate protection.
While the introduction Act 1047 has improved Ghana’s real estate assessment from “very high risk” (pre-2020) to medium-high risk for money laundering under the current GIABA/FATF standards[9], there is the urgent need to implement the framework to secure the industry’s future in Ghana and above all, protect consumers.
Act 1047 establishes a strong framework, but state support is essential for effective implementation. Key priorities include licensing all real estate professionals, creating a database for customer due diligence, and eliminating cash transactions. Ghana will achieve the intended outcomes of Act 1047 once these necessary measures are implemented.
References:
[1] Real Estate Agency Act, 2020 (Act 1047)
[2] Maxwell Kpebesaan Kuu-ire (2024) ‘Ghana’s open secret: Why dirty money in the Real Estate sector is a reality, not a myth’ https://gfintegrity.org; Memorandum of the Real Estate Agency Bill, 21st April 2020 authored by Hon. Samuel Atta Akyea, M.P. (Minister responsible for Works and Housing)
[3] African Union Convention on Preventing and Combating Corruption; United Nations Convention Against Corruption
[4] Designated Non-Financial Businesses and Professions
[5] National Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing (AML/CFT/CPF) Risk Assessment of Ghana (2024), page 83
[6] Section 22 of Act 1047
[7] Section 45 of Act 1047
[8] Section 49 of Act 1047
[9] National Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing (AML/CFT/CPF) Risk Assessment of Ghana (2024), Appendix (page 126)
