US Treasury To Pursue Stricter Requirements To Prevent 'Dirty' Real Estate Deals In Boom Markets
Anonymous all-cash deals in boom markets such as New York, San Francisco, San Mateo and Santa Clara counties will be subject to tougher reporting requirements from the US Treasury Department. All buyers will need to be disclosed in multimillion-dollar deals in select markets as part of a pilot program to root out "dirty" money from real estate transactions.
Preliminary findings by the Treasury indicate approximately 25% of all deals affected by the rule are related to criminal activity, reports The Real Deal. Financial Crimes Enforcement Network (FinCEN) acting director Jamal El-Hindi says the pilot program allows the agency to better target money laundering activity in the real estate market.
Deals over $2M in California will be subject to this ruling. The disclosure is not permanent, but will be used to shape a more permanent policy. [TRD]
