ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Treasury Department Requires Reporting Names of All-Cash Buyers of Luxury Homes

Updated on January 21, 2016

All-Cash Home Purchases Believed to Hide Illicit Money

Criminals paying cash for homes are believed by the U.S. government of using the transactions to hide the source of their money.
Criminals paying cash for homes are believed by the U.S. government of using the transactions to hide the source of their money.

Government Wants to Stop Money Laundering in Real Estate

The U.S. Treasury Department plans to begin tracking the buyers of luxury real estate at a time investment in Washington area properties is picking up quickly.

Treasury Department officials said in a recent statement they are concerned the purchases could be used to launder illicit money, particularly when the real estate is bought in all-cash transactions by shell companies.

Sometimes the shell companies conceal the names of purchasers who obtain their money through drug deals, embezzlement or other illegal activities. The purchasers are called beneficial owners by realtors.

The Treasury Department announcement coincides with a new report from the Association of Foreign Investors in Real Estate that ranked the District of Columbia eighth in the world among the best cities for investment. Nationally, D.C. ranked fourth.

The new government policy marks the first time real estate companies have been required to disclose the purchasers in all-cash transactions.

The risk for realtors is that fewer purchasers will make the investments to protect their privacy. Most all-cash transactions are made for the highest-priced properties that yield the biggest commissions for realtors.

Additional risk comes from the Treasury Department's announcement that it also will investigate professionals who arrange the deals, such as real estate agents, lawyers and bankers.

Beginning in March, title insurance companies will have the first responsibility to find the names of buyers in all-cash transactions of greater than $3 million and submit them to the Treasury Department. The program that begins in March will continue through August, possibly with a permanent extension if government officials discover widespread evidence of money laundering in real estate deals.

The new government initiative resulted from a recent New York Times investigative story that said nearly half the real estate purchased nationwide in cash for more than $5 million was bought by shell companies.

The FBI recently organized a new unit with 10 agents directed at stopping money laundering. Real estate transactions are a primary focus for them.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)