How The Government Plans To Unmask Secret Money Parkers

The US Treasury Department has created a public ownership registry in NYC and Miami in an attempt to unmask secret foreign buyers parking (potentially unsavory) money in US real estate.

In the past five years, $8B worth of ultra-luxury apartments has been bought—three times more than in years past—raising suspicions of money laundering.

A whopping 50% of these have been bought for cash from shell companies, a troubling trend expected to grow in the year ahead. Unlike Swiss banks, developers and lawyers are not required to know who their clients are, making the US a magnet for dirty money, the New York Post reports.

Organizations like the G7, the United Nations and the Organization for Economic Cooperation and Development have been vocal in supporting legislation against money laundering.

The move, which may eventually be rolled out nationally, is intended to introduce more transparency in the luxury real estate market. To date, the enormous influx of cash has inflated US housing levels, spiking the average SF price in New York from $1k to $1,450 in the past five years alone.

But the biggest losers could be luxury developers and wealthy foreigners. Between 2004 and 2013, $1.39 trillion left China while $1 trillion in hidden money left the Russian shores. Meanwhile Mexico produced an outflow of $528B. [NYP]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Microsoft Sues JLL For Protection Against Lawsuit At NYC Office Project

Social Housing Providers Turn To Bond Markets To Fund Expansions

Terra Lands $507M Loan For Miami Beach Condo Tower: The South Florida Deal Sheet

Political Campaigns Have Spent $87M Making Data Centers A TV Villain

Soar AI Secures $1B Equity For Industrial-To-Data-Center Development

Service Properties Trust Gets Surprise $2B Cash Bid For 93 Hotels

Ireland's AI Funding Boom Helps Drive Down Dublin Office Vacancy Rates

How AI Is Reshaping Brokerage Operations And Investor Portfolios

Miami Retail Construction Pipeline Hits Highest Level In 3 Years

Meet The Early Movers In America's $3T Push For Manufacturing Construction

Spirit Christmas Unveils Plans To Grow Store Count This Holiday Season

Stephen Ross, Jeffrey Soffer Scrap Plans For Miami Airport Hotel Project