The United States Treasury is conducting a probe pertaining to luxury real estate assets owned and purchased by illicit funds by those close to Prime Minister Datuk Seri Najib Razak.
According to The Malaysian Insider (based on a report released by New York Times), the properties include those acquired by people with links to Najib, former Russian senators, a former governor from Colombia and a British financier.
The Treasury is looking at cash purchases made by shells companies providing cover for the true identities of the actual buyers.
In reality, opting to use shell companies to purchase homes is not against the law, according to Jennifer Calvery, director of the Financial Crimes Enforcement Network, speaking to New York Times. However, there were instances where homes with a multi-million dollar value had been used as "safe deposit boxes" for ill-gotten wealth and that is something they cannot have.
She said, "We are concerned about the possibility that dirty money is being put into real estate. We think some of the bigger risk is around the least transparent transactions."
In a similar case, the Malaysian Insider continues, also based on New York Times' report, another shell company linked to Malaysian businessman Jho Low purchased a US$23.98 million (RM105 million) apartment at the Park Laurel condominiums in Manhattan, and then it was sold to another shell company that is owned by Najib's stepson Riza Aziz. Another similar transaction was made by Low, allegedly using a different shell company, this time, buying a penthouse at the Time Warner Center condominium for US$30.55 million before selling the same to Riza.
The Treasury, with an aim to increase the focus on money laundering in real estate, would seek to identify the secrets buyers in Manhattan and Miami-Dade County. It is anticipated that the probe would affect billions of dollars worth of real estate.
