Cash purchases of residential real estate in the U.S. are on the rise and the Treasury Department on Wednesday proposed new measures aimed at detecting illicit funds flowing through non-financed purchases in the property sector.
In a far-reaching paper on money laundering, terrorist financing and other illegal financial activities, the Treasury Department said that the relative stability of the U.S. real estate market and its historic reputation as a reliable store of long-term value has traditionally attracted both legitimate interest and those looking to find a reliable mechanism to launder money.
It added: “Money laundering through real estate can negatively affect home prices, particularly since illicit actors seeking to integrate illicit funds may be willing to over or under pay for a property.”
Proposals to curb such activity would require real estate professionals to alert authorities to any suspicious activity in cash purchases of residential property …