The federal government is again expanding its investigation into whether foreign buyers are using shell companies to buy luxury U.S. real estate to launder money after its investigation found that potentially illicit activity is behind more than 30% of cash purchases from foreign buyers in select markets.
US Treasury Department (FinCEN - Financial Crimes Enforcement Network) cracking down on money laundering in real estate, extending its LLC disclosure rules to deals that involve wire transfers. FinCEN has released an August 22, 2017 advisory to financial institutions and real estate firms and professionals.
A year ago, the BAA website had posted information on money laundering and luxury real estate with connections to Bel-Air properties, highlighted in the NEW YORK TIMES investigative report on December 14, 2015. To be reconnected to that post and video links, click here.