For some luxury condo builders in New York and Miami, building for all-cash (and often international) buyers has become a central part of their business plan over the past decade. In the future, those buyers, whether domestic or international, might be receiving more scrutiny, according to the Washington Post's Renae Merle.
Since the 2008 financial crisis, wealthy buyers swooping in and paying cash–sometimes anonymously–have become the bane of traditional home buyers. Now the Treasury Department says it wants to know if some of those luxury buyers are laundering money through their purchases.
The department’s Financial Crimes Enforcement Network will require title insurance companies that help facilitate such deals to identify the people behind all-cash purchase of high-end homes in Manhattan and Miami-Dade County, Fla. The temporary order intends to pierce the confidentiality often sought by luxury buyers who rely on shell companies or limited liability companies to shield their identity.
The requirement will make it easier to identify people attempting to hide their assets or launder money, Treasury said in a statement.