July 27, 2016
The U.S. Treasury Department is expanding a program to California deemed successful in Manhattan and Miami that tracks real estate purchases by shell companies. A pilot “geographic targeting order” program found that more than a quarter of all-cash luxury home acquisitions made by shell companies were suspicious enough to flag for potential money laundering.
That’s resulted in increased scrutiny for cash transactions in Los Angeles County, San Diego County, the three counties around San Francisco, as well as all five boroughs of New York City, counties north of Miami, and the county that includes San Antonio.
The Treasury Department says it is “on the right track,” and believes expanding the program will glean details about money laundering risks nationally so it can better address the issue.
For comments, questions or concerns, please contact Dennis Kaiser