“In Miami-Dade County, the rule will apply to all cash sales worth more than $1 million; in New York City, it applies to sales $3 million or higher. The test program runs from March through August.” The purpose of the program is to disclose or weed out any money from the black market or illegal funds.
And, the Treasury Department will not be the only federal agency to increase oversight of luxury home sale buyers trying to hide ill-gotten gains. “The Justice Department will start to focus on real estate deals separately rather than include them in bigger transactions; and the Federal Bureau of Investigation (FBI) plans to create a new unit that focuses on money laundering with real estate “a central emphasis.”
The emphasis will be on shell companies which are often LLCs or other partnerships. This will put more scrutiny on title insurance companies who will not be required to discover the actual identities of cash buyers and report their information.
Under Treasury rules, a “beneficial owner” – one whose name must be sent to the department – are “each individual who, directly or indirectly, owns 25 percent or more of the equity interests.”
Source: The New York Times, Jan. 13, 2017, Louise
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