The real estate industry is recently being linked to money laundering activities. As the investigation is ongoing, the report is causing worry to the industry and different sectors.
According to Hawaii News Now, the Treasury Department has started an investigation of residential sales in two different places. The department is said to be examining cash-based real estate deals in Miami and Manhattan starting March.
This is how the alleged money laundering syndicates are operating, using the real estate industry as its front. The cash purchases of real estate properties have been in the radar of the investigators. Hence, the U.S. government started digging factual data to justify the alleged money laundering involving real estate properties.
The report at hand states that the initiative done in Miami and Manhattan is a good move to prevent further impact of the illegal activities. There is a tendency that money laundering can reach even the farthest state of Hawaii.
Buying luxurious houses and properties, without the disclosure of the buyer's personal name, is illegal in the U.S., according to Technician Online.
However, there are so many "secret buyers" that will use a company during the initial transaction. This is a way to veil the real personality and identification of the buyer. Later, the purchased property under a company name is going to be transferred to a personal name.
Evidently, according to online reports, the New York Times was the one that started the needed investigation on the matter. Since 2000, more than $5 million of real estate sales have been linked to shell companies. Such investigation even provided a map indicating the areas where the luxury properties are located.
The new regulations and coherent action of the Treasury Department are deemed important to prevent further illegal acts attached to money laundering.
