Berlin strikes back: 58 properties of the Remmo family confiscated!

Berlin strikes back: 58 properties of the Remmo family confiscated!

In a pioneering step, the Berlin Regional Court ordered the confiscation of 58 properties, some of which are in possession of two women from the Remmo family. This happened seven years after a prior seizure of 77 properties by the Berlin public prosecutor, which was based on suspected money laundering. According to [FAZ.NET] (https://www.faz.net/aktuell/kriminalitaet/berliner-richt-ordnet-die-sbung-von-58-immobilien-an- an-110369142.html), the investigation failed in 2021 due to a lack of evidence. However, the decision of the judiciary could have far -reaching consequences for the real estate market.

The confiscated real estate, which are located in the districts of Neukölln, Mitte and in the district of Teltow-Fläming, were acquired by Zeinab F. and Zeinab A. as well as two companies that represent them. Real estate prices vary between 1,500 and 700,000 euros, whereby the public prosecutor's office suspects that the two women only acted as straw women to disguise illegally acquired assets. The banking and contract documents apparently do not prove any significant assets and the two women have sometimes lived from state transfer payments.

The shadow of organized crime

The current development is part of a major problem in the German real estate market, which is increasingly affected by criminal activities. As reports Tagesspiegel.de, the real estate sector increasingly attracts criminals through high transaction volumes, especially in the context of money laundering. Around 563 organized crime procedures were recorded in 2016, with a significant share, about 7%, which was associated with money laundering activities. It is believed that the number of unreported cases is extremely high.

Russian and Italian groups are heavily involved, with the Italian mafia, especially the `Ndrangheta, in Germany, especially in the catering and hotel sector. In 2016, assets of 61 million euros were temporarily secured by suspicious activities in the real estate sector. Experts emphasize that the control system is inadequate and call for a reform of supervision in the real estate sector.

future developments and reforms

The Justice Senator of Berlin, Felor Badenberg (CDU), sees an important step in the fight against organized crime. Although the decision is not yet final and a long legal dispute is to be expected, the discussion about combating money laundering in the real estate sector is in full swing. According to a study by the University of Trier, rising real estate prices correlate directly with growing suspicion of money laundering. A 10% reduction in money laundering could cause real estate prices to drop by 1.9% - a significant point for potential buyers.

In addition to the already existing measures, such as the ban on cash payments when selling real estate since 2023, a central, public real estate register is considered to identify the real owners, which is also one of the requirements of the Greens. In view of the complexity of the company structures that are used to cover criminal activities, it remains to be seen whether the desired reforms will actually have an effect.

In summary, the case of the Remmos and the subsequent court resolutions reveal both the challenges and the progress in the fight against money laundering in the German real estate market. However, it remains to be hoped that future measures will lead to permanent stabilization and transparency.