In October, a journalist engaged with three representatives from Park Dubai Group at their office located within Bascarsija, the historic marketplace in central Sarajevo. A follow-up meeting took place in November with a single representative.

Alternative Payment Methods

During the initial meeting, the representatives outlined various payment options for buyers, which included bank transfers, cash payments, and cryptocurrency. They discussed a complex transaction model where one sum would be paid in Bosnia while an equivalent amount would be transferred to developers in Dubai, minimizing cross-border money movement. This method, often referred to as ‘hawala,’ simplifies transactions without the need for official documentation.

One representative stated, “No paperwork is needed. There’s no requirement to prove the money’s origin. Transfers can be made via banks, online transactions, through accounts, or even in cash. Everything is negotiable.” The implications of such statements raise critical concerns, especially regarding compliance with legal standards.

Legal Implications and Compliance

The representatives reiterated, “It doesn’t matter where the money originates or where clients are from. If the funds haven’t been legalized, clients shouldn’t worry about it. The responsibility for the money transfer lies with us.” However, this stance raises serious questions about adherence to laws in both Bosnia and the United Arab Emirates, which has been flagged by organizations like C4ADS as a potential hub for hiding illicit wealth.

Nerminka Hamidovic, the president of the Notary Chamber in Bosnia’s Federation entity, commented on the legality of cash transactions for real estate. “In Bosnia, it’s illegal to purchase real estate with cash amounts exceeding 30,000 Bosnian marks, or approximately 15,000 euros.” She emphasized that such actions violate the Law on the Prevention of Money Laundering, holding real estate agencies, notaries, bankers, and lawyers accountable.

Park Dubai Group’s Response

When approached for comment before the publication of this article, Park Dubai Group denied any wrongdoing. They asserted to BIRN: “We do not offer or participate in arrangements that would circumvent checks on the origin of funds … or engage in any actions that are not compliant with the law.” Despite these assurances, the group’s operational methods continue to raise eyebrows, highlighting potential loopholes that may foster illicit financial activity.

The complexity of international real estate transactions, coupled with the ease of alternative payment methods, presents a considerable risk for money laundering. The situation warrants careful scrutiny from regulatory bodies to ensure ethical compliance and the protection of the real estate market’s integrity. As globalization continues to blur financial borders, it is crucial for both local and international stakeholders to remain vigilant against practices that could undermine financial regulations.