Abstract

This study examines the mechanisms and extent of money laundering in the real estate sector in Albania, as an area with high sensitivity to illicit financial flows. In a global perspective, this phenomenon constitutes a broad economic and legal challenge, undermining market stability and public trust. The research combines economic, legal and institutional approaches to build an integrated framework of analysis. The main focus is placed on the construction and real estate market, where through international comparisons and the examination of concrete cases, the patterns, actors and factors that enable the laundering of criminal capital are identified. The study relies on empirical data and expert perceptions to identify regulatory gaps and practices with increased risk. The results aim to contribute to the scientific literature and guide policymakers towards measures that strengthen the transparency and financial integrity of the construction sector in Albania.

Field: financial markets, construction sector, economic crime

Keywords: money laundering, informal economy, financial transparency, regulatory risk, institutional integrity

JEL codes: F38, G28, K42, O17, R33

Extended

This dissertation examines the mechanisms and extent of money laundering within Albania's real estate sector — a field particularly prone to illicit financial infiltration. From a global standpoint, money laundering poses a structural challenge to economic integrity and institutional trust. The research adopts an integrated framework that merges legal, financial, and political perspectives to understand how systemic gaps enable such practices. Focusing on the construction and property markets, it analyzes case studies and cross-country comparisons to trace behavioral patterns, high-risk actors, and structural vulnerabilities. Empirical data and expert insights are employed to reveal inconsistencies in enforcement and oversight. The study offers both theoretical and practical value—expanding academic understanding while providing policy recommendations to enhance transparency and safeguard the financial integrity of Albania's construction and real estate sectors.

Field of study: financial markets, construction sector, economic crime

Keywords: money laundering, informal economy, financial transparency, regulatory risk, institutional integrity