The U.S. Department of the Treasury’s Financial Crimes Enforcement Network has issued a Notice of Proposed Rulemaking to combat and deter money laundering in the U.S. residential real estate sector by increasing transparency.
The proposed rule would require certain professionals involved in real estate closings and settlements to report information about non-financed transfers of residential real estate to legal entities or trusts. The proposal is tailored to target residential real estate transfers considered to be high-risk for money laundering, though it would not require reporting of transfers made to individuals.
“Illicit actors are exploiting the U.S. residential real estate market to launder and hide the proceeds of serious crimes with anonymity, while law-abiding Americans bear the cost of inflated housing prices,” said FinCEN Director Andrea Gacki. “Today marks an important step toward not only curbing abuse of the U.S. residential real estate sector, but safeguarding our economic and national security.”
Data from the reports would assist the Department of the Treasury and its law enforcement and national security partners in addressing vulnerabilities that leave the U.S. residential real estate market exposed to abuse by illicit actors.
Public comments on the proposal will be accepted for 60 days following publication in the Federal Register.