In August 2016, we will see the second phase of a program launched by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN); it released a statement in July explaining that the program was created to identify anonymous individuals who tried to bypass the law, cover up their identities or assets and buy property through shell companies in an effort to skate on financial sanctions and taxes. FinCen will use Geographic Targeting Orders (GTOs), which mandate all domestic banks, other financial institutions, trading companies and related businesses, to document and report any transaction of $3 million or more. Cash buyers can avoid trouble and investigation for suspicious activity by taking the following steps: 1. Don't use a shell company Buyers should use a legitimate company to avoid the appearance of money laundering in any form. The federal government is cracking down on real estate companies by requiring them to disclose the names behind lu...
- Buyers should use a legitimate company to avoid the appearance of money laundering.
- The GTOs are specifically intended to flag purchases made without a bank loan or other similar forms of financing, especially all-cash purchases.
- When in doubt, get professional advice.