The Treasury Department has issued new regulations aimed at combating money laundering in residential real estate transactions. The rules, finalized on Wednesday, will require investment advisers and real estate professionals to report cash sales of residential properties to legal entities, trusts, and shell companies. These reporting requirements do not apply to sales to individuals or transactions involving financing.
The Biden administration is implementing these rules as part of a broader effort to crack down on money laundering and illicit financial activities in the United States. Cash purchases of residential real estate are considered high-risk for money laundering, as they can facilitate the movement of dirty money through the financial system.
