• Treasury’s Financial Crimes Enforcement Network (FinCEN) is cranking up the heat on the game of real estate Monopoly.
• Say goodbye to ‘free parking’ as all-cash residential sales to shell companies, legal entities, and trusts now come with extra side of paperwork.
• Real estate pros handling settlements and closings will now serve as the finance industry’s involuntary secret agents – turning over the clandestine details of such property deals.
• These new rules are just a leaf from the book of Anti-Money Laundering (AML) regulations, extending their tentacles into the world of property trading.
• Thanks to this, property sharks can’t just ‘pass go and collect $200’ – they’ll need to file a report first.
Real Estate World Faces a Regulatory Tsunami
Rule Change: Now paper pushers in the path of money sharks
New AML law to ruffle the feathers of clandestine property dealers
Feeling cold? Well, that’s just the Treasury’s Financial Crimes Enforcement Network missing no opportunity to blow off some steam. Remember the good ol’ days when you could just sell a house for a bag of cash and forget about it? Those days are deader than dial-up internet, folks.
Much to the chagrin of the real estate industry – and possibly anyone who fantasizes about playing hide-and-seek with their money – the era of anonymous cash real estate purchases has gone the way of the dinosaurs. Sure, you can still try to buy your dream house with an overstuffed briefcase, but now the professional middlemen handling these transactions will report every detail to the Treasury’s watchful eyes.
This new rule from FinCEN is essentially an anti-money laundering agenda dressed in real estate clothes. Jane Doe can’t just waltz into Monopoly and buy herself a hotel on Boardwalk – not unless she wants to fill out some paperwork and possibly explain where she got that briefcase stacked with unmarked hundreds.
Imagine a world where buying properties with a sack full of cash isn’t just about impressing your least favorite uncle at the family reunion. Now, you have to impress Uncle Sam as well. The financial game of hide & seek just got a little less fun and a lot more bureaucratic.
My hot take? Pass the popcorn, folks. This financial thriller is about to get juicier than a TV soap opera. Now all we need is a sassy title. How about ‘The Real Agents of Treasury?’ Sounds like a reality show everyone in the property business would binge out of necessity! Happy reporting!
Original article: https://www.inman.com/2024/02/08/treasury-releases-proposed-rule-for-reporting-all-cash-luxe-sales/
