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
Codes | Aug 24, 2016
Weak building codes no match for recent natural disasters, say industry experts
The recent floods and wildfires in Alberta are being cited as proof.
Legislation | Aug 24, 2016
World Trade Center contractor found guilty of minority-owned business fraud
The company used two minority firms as fronts in a nearly $1 billion scheme.
Codes and Standards | Aug 22, 2016
Federal construction contractors propose reforms to federal project delivery
Industry leaders offer how procurement system could be improved.
Legislation | Aug 19, 2016
California lawmakers may take action to address contractor negligence
An assembly committee heard testimony on deadly balcony collapse that occurred last year.
Energy Efficiency | Aug 17, 2016
Investor Confidence Project aimed at raising trustworthiness on energy efficiency projects
The new initiative screens projects to see if they are investor-ready.
Standards | Aug 17, 2016
U.K.’S BREEAM green building standard enters U.S. market
The standard is touted as a cost-effective alternative to LEED.
Standards | Aug 16, 2016
Standard for conducting, reporting energy audits open for review
A joint ASHRAE/ACCA proposal seeks comments from industry professionals.
Legislation | Aug 10, 2016
Calif. bill would speed up environmental lawsuits on certain projects
A nine-month limit has been proposed for some $100 million-plus projects.
Resiliency | Aug 10, 2016
White House pushes for better finance strategies for disaster mitigation and resilience
The move highlights innovative insurance, mortgage, tax, and finance-based strategies.
Regulations | Aug 9, 2016
New trend eases parking requirements for U.S. cities
Transit-oriented development and affordable housing are spurring the movement.
