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Yesterday, the Biden Administration, through the Treasury Department, revealed details of its plan to address financial corruption. Individuals who have accumulated wealth through illegal means have long utilized the real estate market to hide and launder their illicit funds. This method enables them to evade taxes and obligations, among other financial offenses.
To combat these illicit activities, the Treasury Department’s Financial Crimes Enforcement Network, also known as “FinCEN,” aims to enhance transparency in the real estate sector, making it harder for individuals to conceal funds through real estate transactions.
“Enhancing transparency in the real estate industry will limit the ability of corrupt individuals and criminals to launder illegally obtained money through the U.S. real estate market,” stated Imamauli Das, Acting Director of FinCEN, in a press release.
The Treasury Department is soliciting suggestions and feedback from the public on methods to boost transparency, such as identifying suspicious real estate transactions and determining the necessary information that should be documented and monitored. For instance, a cash-only real estate purchase could raise concerns.
The Biden administration revealed measures to combat corruption globally, including new regulations on U.S. real estate transactions to prevent money laundering https://t.co/8fnDdJSTqM
— The Wall Street Journal (@WSJ) December 6, 2021
“Gathering input from stakeholders will enable FinCEN to propose regulations that capture essential information required to bolster the efforts of law enforcement and national security agencies in targeting corrupt individuals and criminals seeking to exploit our real estate market,” shared a senior administration official with the press.
“Corruption poses a threat to U.S. national security, economic fairness, global anti-poverty initiatives, and democracy itself. However, by effectively preventing and confronting corruption, and by showcasing the advantages of transparent and accountable governance, we can gain a critical edge for the United States and other democratic nations,” expressed President Joe Biden in June.
