The U.S. Treasury Department says it will begin identifying and tracking buyers of high-end properties who make cash purchases through shell companies that hide the buyer’s identity.
This is the first time the federal government has required real estate companies to disclose names behind cash transactions, and it is aimed at combating money laundering schemes. There are concerns that this rule will cut into the luxury housing market that has boomed in recent years.
The initiative is part of a larger federal effort to combat money laundering in real estate. The effort will start in Manhattan and Miami-Dade County, Fla., the New York Times reported.
The newspaper examined a decade of ownership at a prominent condominium complex near Central Park, and found a number of hidden owners who had been investigated by the government. In a related development, last spring, New York City’s Finance Department began requiring shell companies buying real estate to report their members to the city.
http://www.nytimes.com/2016/01/14/us/us-will-track-secret-buyers-of-luxury-real-estate.html
Related Stories
| Nov 3, 2011
House Votes to Kill 3% Withholding Requirement; Senate Yet to Vote
The U.S. House of Representatives voted last week to repeal a 3% IRS withholding tax on businesses that do work for the government.
| Nov 3, 2011
OSHA Publishes Information on Rights and Safety
OSHA recently published new and revised information that explains workers’ and employers’ rights, as well as how to protect workers from hazards in the construction industry.
| Nov 3, 2011
Sierra Club Critical of Albuquerque Mayor’s Push to Weaken Green Code
The mayor’s plan to move to a less environmentally friendly code would mean confusion for people in the construction industry and a loss of energy efficiency and money for consumers, said Shrayas Jatkar of the Sierra Club.
| Nov 3, 2011
Lax Code Enforcement Blamed for Deaths in Turkey’s Earthquake
Despite tough safety codes approved a decade ago after earthquakes killed 18,000 people, lax enforcement led to hundreds of deaths after a recent earthquake in Turkey.
| Nov 3, 2011
International Green Construction Code Will Provide Template for Local Codes
A uniform code for green construction is being readied for publication in March.
| Oct 31, 2011
NIST issues new code requirements
Buildings taller than 420 feet are now required to include an extra exit stairwell or a specially designed elevator that occupants can use for evacuations.
| Oct 28, 2011
Los Angeles County mulling building codes for improving health
An ordinance would amend county building codes to promote better walking environments, encourage more bicycling, improve access to healthy foods (farmers markets, community gardens), and enhance project review requirements to ensure that developers include healthy-lifestyle components in their building plans.
| Oct 28, 2011
Bipartisan opposition to federal 3% withholding for contractors
Both major political parties and the Obama Administration support repealing a law that would withhold 3% of all government contracts.
| Oct 28, 2011
OSHA requires training module on top causes of construction deaths
The Occupational Health and Safety Administration (OSHA) now requires a training module on the top four causes of death for construction workers.
| Oct 28, 2011
New York City requiring building energy use to be posted online
Owners of every New York City commercial and residential building larger than 50,000 sf will have to post each building’s energy use online by 2013.