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Biden Aims At Increasing Transparency in Real Estate to Curb Corruption

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To stop the use of the U.S. market for money laundering through illicit activity, the Biden administration is trying to expand reporting requirements on all-cash real estate deals.

At present title insurance companies in 12 metropolitan areas are needed to file reports naming people making all-cash purchases of residential real estate through shell companies if the transaction exceeds $300,000.

The acting director of Treasury’s Financial Crimes Enforcement Network, Himamauli Das, said more transparency in the real estate sector will restrain corrupt officials and criminals to launder through the U.S. real estate market.

With this move, the U.S. national security will get strengthened and it will also help in protecting the integrity of the American financial system added Das.

For a long, the U.S. real estate market has been a continuous place for corrupt government officials and other illicit parties looking to launder revenue from criminal activities.

The International Consortium of Investigative Journalists’ publication of the “Pandora Paper recently found out that the current and former world leaders, and those close to them, have been using shell companies to buy real estate and other assets in the U.S. and elsewhere.

The leaked documents showed that for the past quarter-century many prominent figures have been using shell companies to buy mansions, and private beachfront property, yachts, and other assets.

Various proposals have been made to enhance tax transparency and reinforce the fight against tax evasion.

On Monday, the Biden administration issued strategies on countering corruption and set new real estate market regulations.

This week President Joe Biden will host a virtual summit, with leaders and civil society experts from more than 100 countries.

With this strategy, the U.S will work on confronting corruption and work on strengthening the protection of civil society and others who expose corruption.

Reference Source: The Columbian

https://www.compareclosing.com/mortgagenews/biden-aims-at-increasing-transparency-in-real-estate-to-curb-corruption/

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