Current:Home > ScamsNew US rules try to make it harder for criminals to launder money by paying cash for homes -MarketStream
New US rules try to make it harder for criminals to launder money by paying cash for homes
View
Date:2025-04-14 09:25:48
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.
Money laundering in residential real estate can also drive up housing costs – and rising home prices are one of the big economic issues i n this year’s presidential campaign. A 2019 study on the impact of money laundering on home values in Canada, conducted by a group of Canadian academics, found that money laundering investment in real estate pushed up housing prices in the range of 3.7% to 7.5%.
Under the new rules, the professionals involved in the sale will be required to report the names of the sellers and individuals benefitting from the transaction. They will also have to include details of the property being sold and payments involved, among other information.
Treasury Secretary Janet Yellen said in a news release that the new rules address some of the nation’s biggest regulatory deficiencies.
“These steps will make it harder for criminals to exploit our strong residential real estate and investment adviser sectors,” she said.
Ian Gary, executive director of the FACT Coalition, a nonprofit that promotes corporate transparency, called the rules “much-needed safeguards” in the fight against dirty money in the U.S.
“After years of advocacy by lawmakers, anti-money laundering experts and civil society, the era of unmitigated financial secrecy and impunity for financial criminals in the U.S. seems to finally be over,” Gary said.
The Biden administration has made increasing corporate transparency part of its overall agenda, including through creating a requirement that tens of millions of small businesses register with the government as part of an effort to prevent the criminal abuse of anonymous shell companies.
However, an Alabama federal district judge ruled in March that the Treasury Department cannot require small business owners to report details on their owners and others who benefit from the business.
veryGood! (2583)
Related
- The Daily Money: Spending more on holiday travel?
- Taliban official says Afghan girls of all ages permitted to study in religious schools
- 'Not suitable' special from 'South Park' spoofs online influencers, Logan Paul and more
- Top COVID FAQs of 2023: Staying safe at home, flying tips, shot combos, new variant
- Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
- Five-star safety reverses course, changes commitment to Georgia from Florida State
- French serial killer's widow, Monique Olivier, convicted for her part in murders
- Naiomi Glasses on weaving together Native American art, skateboarding and Ralph Lauren
- Elon Musk's skyrocketing net worth: He's the first person with over $400 billion
- Houston children's hospital offers patients holiday magic beyond the medicine
Ranking
- Opinion: Gianni Infantino, FIFA sell souls and 2034 World Cup for Saudi Arabia's billions
- New York City’s teachers union sues Mayor Eric Adams over steep cuts to public schools
- Man accused of texting death threats to Ramaswamy faces similar charges involving 2 more candidates
- The 'Yellowstone' effect on Montana
- Report: Lauri Markkanen signs 5-year, $238 million extension with Utah Jazz
- Watch this 9-year-old overwhelmed with emotion when she opens a touching gift
- Albania’s parliament lifts the legal immunity of former prime minister Sali Berisha
- 14 people injured, hundreds impacted in New York City apartment fire, officials say
Recommendation
The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
Philadelphia news helicopter crew filmed Christmas lights in New Jersey before fatal crash
Tearful Michael Bublé Shares Promise He Made to Himself Amid Son's Cancer Battle
Two county officials in Arizona plead not guilty to charges for delaying 2022 election certification
Drones warned New York City residents about storm flooding. The Spanish translation was no bueno
Vanilla Gift card issuer faces lawsuit over card-draining scam risk
Hungary’s Orbán says he agreed to a future meeting with Ukrainian President Zelenskyy
Oklahoma judge rules Glynn Simmons, man who wrongfully spent nearly 50 years in prison for murder, is innocent