The U.S. Treasury Department is seeking public comment for a proposed regulation that would address what it calls vulnerability in the real estate market. The department is hoping to tighten oversight on all-cash deals in select major markets with the hopes identifying and eliminating money laundering and purchases made with funds garnered through illegal activities.
According to the Associated Press, title insurance companies in only 12 metro areas are required to file reports identifying people who make all-cash purchases of residential real estate through shell companies if the transaction exceeds $300,000.
The local markets in question include Los Angeles, San Diego, San Francisco, as well as Boston, Chicago, Dallas-Fort Worth, Honolulu, Las Vegas, Miami, New York City, San Antonio and Seattle.
The AP notes that the use of shell companies by current and former world leaders and their associates to purchase real estate in the U.S. was highlighted by the International Consortium of Investigative Journalists’ publication of the Pandora Papers.