The latest expose called “Dubai Unlocked” provides insights into the underbelly of Dubai’s luxury real estate market. This comprehensive investigation uncovers how individuals from the international elite, including criminals, politicians and sanctioned individuals, invest in the desert metropolis’ real estate business. Through leaked data, the Organized Crime and Corruption Reporting Project (OCCRP), in collaboration with 74 media partners worldwide, was able to conduct a detailed analysis of ownership structures in Dubai and bring questionable transactions to light.
The overall context: money laundering and Dubai as a paradise for questionable investments
In recent decades, Dubai has developed from a trading outpost into a global financial center. However, with its rapidly growing real estate market and a policy of financial anonymity and low taxes, the emirate has also become an attractive destination for shady actors. In addition to free trade zones, the city also offers loose regulations that allow assets from questionable sources to be invested in real estate.
Even high-profile lawbreakers not only find refuge in Dubai, but also a platform to increase their wealth. Real estate investments allow them not only to secure capital, but also to evade international sanctions and prosecution. ZDF has also devoted itself to the topic.
A look at the “Dubai Unlocked” data: The case of Ruja Ignatova
One of the prominent figures highlighted in the “Dubai Unlocked” revelations is Ruja Ignatova, known as the “cryptoqueen”. Ignatova has long been on the FBI’s most-wanted list after she ran a billion-dollar Ponzi scheme with her alleged cryptocurrency company OneCoin, which harmed millions of investors worldwide. The investigation revealed that Ignatova owned a luxurious 500 square meter apartment in Dubai, presumably financed with funds from her fraudulent operation. Several of her closest associates also appeared in the property ownership data. This suggests that funds from OneCoin transactions may have flowed into Dubai’s real estate landscape.
Why Dubai?
There are several reasons why Dubai is so attractive to international players with dubious intentions:
- Financial anonymity: Dubai’s real estate register is difficult to access, making it difficult for international law enforcement agencies to identify owners.
- Legal loopholes: Dubai has long had no extradition agreements with many countries. This makes it a haven for wanted persons, where they are relatively safe from prosecution.
- Tax exemption: The city does not levy income or capital gains taxes, which makes it an attractive location for investors and wealthy individuals who want to conceal their assets.
- Extradition is not an issue: there is no serious risk of being extradited from there – and for 500,000 US dollars there is a 10-year right of residence for the whole family. However, the question of extradition is crumbling; in Germany, it is increasingly expected that extradition from the UAE will also be considered in cases of tax evasion.
Consequences and reactions
The revelations of “Dubai Unlocked” have caused a worldwide stir. Politicians and organizations are increasingly calling for the United Arab Emirates to rethink its role in the global financial system and take stronger action against money laundering. The Financial Action Task Force (FATF) placed the United Arab Emirates on the “gray list” in 2022 due to a lack of anti-money laundering efforts, but lifted this classification in 2023 following alleged progress. Nevertheless, the city remains a magnet for anyone who wants to park capital anonymously and discreetly.
EXAMPLE: DRUG NETWORK IN FRANCE
LeMonde traces acquisition of drug network
The extensive insights from the “Dubai Unlocked” leak have had a decisive impact on Le Monde ‘s investigative research and enabled a remarkable report on the investments of drug traffickers from Marseille in luxury real estate in Dubai. The article shows how these players from the Cité des Oliviers, a social hotspot in Marseille, invested millions in Dubai’s real estate sector in order to protect their criminally acquired assets from the French authorities.
The path to the LeMonde report
The leak, which was leaked to the American think tank Center for Advanced Defense Studies (C4ADS) and investigated in collaboration with the OCCRP (Organized Crime and Corruption Reporting Project), gave Le Monde journalists access to information on numerous property purchases in Dubai. This data showed that members of a large drug ring from Marseille, who are being prosecuted in France, invested considerable sums in Dubai’s luxury real estate.
The main focus was on the “Act One” and “Act Two” towers in a posh district of Dubai, where French drug dealers had purchased numerous apartments. Analysis of the property data revealed that Amdjad A., a central player in the network, alone owned around 25 apartments together with an old friend, with a total value of over 15 million euros. These properties were used strategically, partly as long-term investments and partly as a source of income by renting them out via platforms such as Airbnb.
The revelations and their significance
The details uncovered by Le Monde illustrate how the network systematically invested in real estate to launder criminal capital and thus also created an opportunity to evade justice in the long term. In addition to buying luxury apartments, these players also took advantage of Dubai’s tax-free economy and the authorities’ lack of interest in suspicious activity reports in the real estate sector. This approach has so far made it difficult for the French judiciary to access the assets.
The Olivier network refers to a large criminal organization in the drug trade that is active in the Cité des Oliviers in Marseille, a social hotspot. This network mainly distributes cannabis, cocaine and MDMA and is one of the most important drug suppliers in the region. Despite criminal prosecution and convictions of several leading figures in the network, the judiciary was unable to trace the flow of money for a long time until the “Dubai Unlocked” leak made it clear that considerable sums had flowed into dubious real estate projects in Dubai.
Another interesting aspect uncovered by Le Monde is the meeting of French drug traffickers from different networks in the same buildings. The investigation points to a coordinated strategy in which the networks even used the same service providers and methods to conceal their ownership.
This uses a clearing system that converts cash in France into false invoices and bank transfers that end up in Dubai: The clearing system in France allowed drug traffickers to inconspicuously convert their illicit proceeds, often in the form of small sums of cash, into real estate investments. The players exchanged the cash for bank transfers. The principle is simple: the drug dealers hand over their cash to companies or individuals who themselves have a need for untaxed money, for example to pay illegal workers. In return, these business partners make transfers in the name of the drug dealers, often via a network of letterbox companies and forged invoices. In this way, the money is ultimately transferred legally to Dubai, where it can be invested in luxury properties.
Conclusion
The “Dubai Unlocked” revelations impressively show how Dubai has become a global meeting place for wealth and crime. While the glittering facades and skyscrapers present the city as a Mecca for wealth and success, a world of financial darkness hides behind them. The stories surrounding Ruja Ignatova and other shady investors cast a shadow over the glittering metropolis and call for a more intensive fight against money laundering and financial crime.
The Le Monde report, for example, based on the “Dubai Unlocked” data, highlights how closely Dubai’s real estate markets are linked to global financial flows from dubious sources and how the city is becoming a hotspot for international crime. The revelations increase the pressure on international cooperation in the fight against money laundering and crime in the real estate sector.
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