Identity of Real Buyers to Be Required in Manhattan and Miami for Certain “All Cash” Real Estate Transactions

 Guest Post by Michael Krieger 

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The Financial Crimes Enforcement Network (FinCEN) today issued Geographic Targeting Orders (GTO) that will temporarily require certain U.S. title insurance companies to identify the natural persons behind companies used to pay “all cash” for high-end residential real estate in the Borough of Manhattan in New York City, New York, and Miami-Dade County, Florida. FinCEN is concerned that all-cash purchases – i.e., those without bank financing – may be conducted by individuals attempting to hide their assets and identity by purchasing residential properties through limited liability companies or other opaque structures. To enhance availability of information pertinent to mitigating this potential money laundering vulnerability, FinCEN will require certain title insurance companies to identify and report the true “beneficial owner” behind a legal entity involved in certain high-end residential real estate transactions in Manhattan and Miami-Dade County.

– From today’s announcement: FinCEN Takes Aim at Real Estate Secrecy in Manhattan and Miami

Anyone with a pulse and more than a couple of functioning brain cells has been aware for years that corrupt foreign oligarchs, politicians and dictators have been using global high end real estate as their preferred means to launder billions if not trillions of funds collectively stolen from their host populations. While London seems to be the preferred venue, Manhattan is not that far behind.

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