Federal agencies, including the U.S. Treasury, are redoubling their efforts to combat money laundering through shell companies, specifically as they relate to real estate transactions. A notice of proposed rulemaking from the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) would not only expand but also reset the burden of compliance, according to a new white paper by Kroll, a Corporate Risk Holdings company. As a result, experts believe that the real estate industry must immediately begin preparing for tighter scrutiny.
The new rules are intended to uncover shell companies used by international corrupt politicians, drug traffickers and other criminals looking to purchase luxury real estate in cash. This uptick in federal observation will be indiscriminate, however, and affect the entire legitimate real estate industry, which must be prepared for a new age of transparency.
To learn more about the potential impact of new rules on the real estate industry, download the white paper: Real Estate Dealmakers and Industry Must Prepare for Due Diligence Crackdown.
Kroll is the leading global provider of risk solutions. For more than 40 years, Kroll has helped clients make confident risk management decisions about people, assets, operations and security through a wide range of investigations, cyber security, due diligence and compliance, physical and operational security, and data and information management services. Headquartered in New York with more than 50 offices across nearly 30 countries, Kroll has a multidisciplinary team of over 2,000 employees and serves a global clientele of law firms, financial institutions, corporations, non-profit institutions, government agencies and individuals.