The U.S. Treasury Department will begin developing regulations that could expand reporting requirements for all-cash real estate purchases as part of the Biden administration's efforts to cut down on global corruption, according to two senior administration officials.
The new rule could force title insurance companies to turn over information about cash purchases funneled through shell companies in additional metropolitan areas, or implement new disclosures for commercial purchases in addition to residential sales, according to the officials, who requested anonymity to detail the effort before it's formally announced.
The rule-making process is an outgrowth of a new strategy to counter corruption that the administration is expected to unveil on Monday ahead of President Joe Biden's democracy summit this week. Federal departments and agencies are expected to unveil additional steps as part of the strategy, including the creation of senior anti-corruption jobs across federal departments.
The Pentagon has committed to including risk analysis about possible corruption as it determines the distribution of security assistance to other nations, while other departments are expected to more heavily weigh the issue as they consider foreign humanitarian aide.
But the proposed real-estate rule may have the biggest domestic impact. Currently, title insurance companies are required to identify to the Treasury Department's Financial Crimes Enforcement Network the persons behind shell companies used in all-cash purchases of residential real estate -- but only on homes costing over $300,000, and only in a dozen metropolitan areas.
"Increasing transparency in the real estate sector will curb the ability of corrupt officials and criminals to launder the proceeds of their ill-gotten gains through the U.S. real estate market," Himamauli...
