{"id":1811,"date":"2021-12-07T14:35:07","date_gmt":"2021-12-07T18:35:07","guid":{"rendered":"http:\/\/ielrblog.com\/?p=1811"},"modified":"2021-12-07T14:36:37","modified_gmt":"2021-12-07T18:36:37","slug":"treasury-initiative-targets-anonymous-real-estate-purchases-and-proceeds-of-corruption","status":"publish","type":"post","link":"https:\/\/ielrblog.com\/index.php\/2021\/12\/07\/treasury-initiative-targets-anonymous-real-estate-purchases-and-proceeds-of-corruption\/","title":{"rendered":"Treasury Initiative Targets Anonymous Real Estate Purchases and Proceeds of Corruption"},"content":{"rendered":"

On December 7, 2021, the Financial Crimes Enforcement Network (FinCEN) issued an Advance Notice of Proposed Rulemaking (ANPRM)<\/a> with respect to soliciting public comments on potential requirements under the Bank Secrecy Act (BSA)<\/a> for certain persons involved in real estate transactions to collect, report, and retain information.<\/p>\n

FinCEN\u2019s ANPRM expressed concern about the systemic money laundering vulnerabilities in the U.S. real estate sector.\u00a0 It observed that the ability of illicit actors to launder criminal proceeds through the purchase of real estate threatens U.S. national security and the integrity of the U.S. financial system.\u00a0 As a result, FinCEN will start the rulemaking process to address such vulnerabilities.\u00a0 As the initial step in this rulemaking process, FinCEN is issuing the ANPRM to seek initial public comment on questions that will assist FinCEN in the consideration and preparation of a proposed rule.<\/p>\n

FinCEN is considering how best to focus its regulatory attention on residential and commercial real estate transactions.\u00a0 FinCEN observes that money laundering risks arise from transactions in both the commercial and residential real estate sectors.\u00a0 Hence, both merit appropriate regulatory treatment.\u00a0 Simultaneously, FinCEN recognizes that a repetitious approach may be required due to the complexities and differences between different market sectors and the potential burdens that new reporting and recordkeeping requirements may have for businesses.<\/p>\n

FinCEN is considering to initially focus on residential real estate, followed by later issuing regulations covering the commercial real estate sector, as well as any other regulatory gaps that may exist with money laundering vulnerabilities concerning real estate.<\/p>\n

Areas for Which Comments Are Requested<\/em><\/p>\n

FinCEN seeks comment to help it in preparing a potential proposed rule that would seek to impose nationwide recordkeeping and reporting requirements on certain persons participating in transactions involving non-financed purchases of real estate.\u00a0 Until now, FinCEN has not imposed the BSA\u2019s general recordkeeping and reporting requirements on businesses involved in non-financed real estate transactions.\u00a0 However, FinCEN has imposed more specific transaction reporting requirements on title insurance companies in the form of time-limited Geographic Targeting Orders<\/a> under 31 U.S.C. 5326(a).\u00a0 The ANPRM requests public comment on whether FinCEN should impose a similar, ongoing, and expanded reporting requirement through regulations, specifically under 31 U.S.C. \u00a7 5318(g)(1) and related program requirements under 31 CFR 5318(h) .<\/p>\n

In particular, FinCEN requests comment on the potential scope of any such regulations, including, among other things, (1) the persons who should be subject to the requirements; (2) which types of real estate purchases should be covered; (3) what information should be reported and retained; (4) the geographic scope of such a requirement; and (5) the appropriate reporting dollar-value threshold.<\/p>\n

Analysis<\/em><\/p>\n

The ANPRM coincides with the organizing and hosting of President Biden\u2019s Summit for Democracy on December 9, in which representatives of more than 100 countries will gather virtually.\u00a0 Combating corruption abroad starts with combating at home.\u00a0 Hence, the ANPRM aims to expose the owners of shell companies and other illicit funds.\u00a0 The initiative complements the Corporate Transparency Act,<\/a> enacted as part of the Anti Money Laundering Act of 2020.<\/p>\n

The current issue of the IELR will have a more comprehensive discussion of the implications of the ANPRM.<\/p>\n","protected":false},"excerpt":{"rendered":"

On December 7, 2021, the Financial Crimes Enforcement Network (FinCEN) issued an Advance Notice of Proposed Rulemaking (ANPRM) with respect to soliciting public comments on potential requirements under the Bank Secrecy Act (BSA) for certain persons involved in real estate transactions to collect, report, and retain information. FinCEN\u2019s ANPRM expressed concern about the systemic money […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[13,79,125,18,164,19,153,5,44,4,80,99,46,3,249],"tags":[274],"class_list":{"0":"post-1811","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-international-administrative-penal-law","7":"category-corruption","8":"category-counterterrorism-enforcement","9":"category-entity-transparency","10":"category-financial-intelligence","11":"category-gatekeeper-obligations","12":"category-illicitfinancing","13":"category-international-tax-enforcement-cooperation","14":"category-international-tax-regime","15":"category-money-laundering-and-bank-secrecy","16":"category-national-security","17":"category-tax-controversy","18":"category-tax-crime-enablers","19":"category-transnational-corruption-money-laundering-and-asset-forfeiture","20":"category-transnationalcrime","21":"tag-financial-crimes-enforcement-network-fincen","22":"entry"},"yoast_head":"\nTreasury Initiative Targets Anonymous Real Estate Purchases and Proceeds of Corruption | IELR Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ielrblog.com\/index.php\/2021\/12\/07\/treasury-initiative-targets-anonymous-real-estate-purchases-and-proceeds-of-corruption\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Treasury Initiative Targets Anonymous Real Estate Purchases and Proceeds of Corruption | IELR Blog\" \/>\n<meta property=\"og:description\" content=\"On December 7, 2021, the Financial Crimes Enforcement Network (FinCEN) issued an Advance Notice of Proposed Rulemaking (ANPRM) with respect to soliciting public comments on potential requirements under the Bank Secrecy Act (BSA) for certain persons involved in real estate transactions to collect, report, and retain information. 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