New US rules try to make it harder for criminals to launder money by paying cash for homes
The Treasury Department has issued new regulations aimed at making it harder for criminals to launder money by paying cash for residential real estate
REHOBOTH BEACH, Del. (AP) — The Treasury Department has issued regulations aimed at making it harder for criminals to launder money by paying cash for residential real estate.
Under rules finalized Wednesday, investment advisers and real estate professionals will be required to report cash sales of residential real estate sold to legal entities, trusts and shell companies. The requirements won't apply to sales to individuals or purchases involving mortgages or other financing.
The new rules come as part of a Biden administration effort to combat money laundering and the movement of dirty money through the American financial system. All-cash purchases of residential real estate are considered a high risk for money laundering.
The Treasury's Financial Crimes Enforcement Network, also known as FinCEN, will administer the rules.
