UNITED STATES TREASURY BEGINS CRACK DOWN ON MONEY LAUNDERING

[Edwin Vela]

UNITED STATES TREASURY BEGINS CRACK DOWN ON MONEY LAUNDERING THROUGH HIGH END RESIDENTIAL REAL ESTATE

In an effort to combat money laundering in the real estate sector, The Financial Crimes Enforcement Network (FinCen), a bureau of The United States Treasury Department, has issued Geographic Targeting Orders (GTO) that will temporarily require title insurance companies to identify the names and social security numbers of the natural persons behind LLC's and other opaque structures that are used as shell companies to purchase high end residential real estate.

Reporting will be required on "All Cash" purchases of residential properties that exceed $3,000,000 in Manhattan and $1,000,000 in Miami-Dade County. The GTO will remain in effect from March 1, 2016 through August 27, 2016 with the possibility of being extended depending upon what the policy uncovers. All reporting to FinCen will be done using IRS Form 8300. 

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