Feds: “We Come Across Real Estate Being Purchased With Illicit Funds Once Every Other Case”
by Tyler Durden
ZeroHedge.com
Mar 13, 2017
The latest note out of real estate expert Mark Hanson points to something we have discussed since 2012: the use of US real estate to park “hot” and in some cases illegal foreign capital in US real estate courtesy of the NAR’s exemption from anti-money laundering regulations. Some of the highlighted observations are stunning.
Higher-End REAL ESTATE TROUBLE Worsens (From New York to Florida to California), by Mark Hanson of M Hanson Advisers
In Feb. 2016, the Treasury’s FinCEN enacted “GEOGRAPHIC, ANTI-MONEY-LAUNDERING, TARGETING ORDERS of 2016”.
Apparently, the program worked out so well, in August ’16, it was expanded to cover the rest NYC and SoFL, in addition to the LA, San Diego, San Fran Bay Area, and San Antonio regions. Regarding the expansion, on July 28, 2016, I put out a note entitled “7-28 Hanson…Higher End Real Estate’s Coup De Grace…Heads-Up,.” copied at the bottom of this note, highlighting what I perceived to be the fall-out.
Everybody assumed this program would end organically last month, but it was renewed for another year, which wasn’t widely reported.
The Rest…HERE
