The Biden administration is taking steps to increase transparency in residential real estate transactions in order to combat money laundering and the movement of illicit funds through the American financial system. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has proposed a regulation that would require real estate professionals to report information to the agency about non-financed sales of residential real estate to legal entities, trusts, and shell companies. All-cash purchases of residential real estate are considered high risk for money laundering. The proposed rule would not require reporting of sales to individuals. The goal is to prevent illicit actors from using the U.S. residential real estate market to launder and hide the proceeds of serious crimes. This regulation is part of a broader effort by the Biden administration to increase transparency in real estate transactions and protect economic and national security.
New residential real estate transparency rules introduced by Treasury to tackle money laundering
These new residential real estate transparency rules introduced by Treasury are a positive step towards preventing money laundering in the real estate market. By increasing transparency and requiring more thorough reporting, these rules will help to ensure that illicit funds are not being used to purchase properties. It is important for all stakeholders in the real estate industry to comply with these regulations in order to protect the integrity of the market and prevent criminal activity.
These new residential real estate transparency rules introduced by Treasury are a significant step towards preventing money laundering in the real estate sector. By increasing transparency and accountability, these rules will help to protect the integrity of the American financial system and ensure that illicit funds are not able to flow through the real estate market unchecked. It is a positive development in the ongoing fight against financial crime.