The Biden government is calling for increased reporting requirements for real estate transactions that are only made in cash to stop money laundering in the real estate industry.

Extended regulations may require title insurance companies to provide information about cash purchases from sales companies in metropolitan areas. Currently, home insurance companies in just 12 metropolitan areas, including New York, Boston, Chicago, Los Angeles, San Francisco, and others, are required to file reports identifying customers who make money buying a home. residential property through local companies when the transaction is larger. to $ 300,000. The new regulations could expand reporting requirements across the United States.

In addition, the new regulations could include new disclosures for commercial purchases and sales of homes, Bloomberg reports, citing information from two senior administration officials.

Government officials say the goal is to deter those who received their money using corrupt or illegal U.S. real estate acts to cover it up.

“Increased transparency in the real estate industry will reduce the ability of corrupt and criminal officials to launder illegal income through the US real estate market,” said Himamauli Das, executive director of the Treasury Department’s Financial Crime Enforcement Network. “Addressing this risk will strengthen US national security and help protect the integrity of the US financial system. “

Earlier this year, Congress passed a law requiring bogus companies with 20 or fewer employees and annual sales of less than $ 5 million to report to the Property Information Service. Some critics of the law complain that the additional reporting requirements for small businesses result in additional legal fees.

Translate »