On 12/06/21, the Financial Crimes Enforcement Network (FinCEN) issued an Advance Notice of Proposed Rulemaking (ANPRM) to solicit public comment on a potential rule to address the vulnerability of the U.S. real estate market to money laundering and other illicit activity. According to the release, this ANPRM is important as the systemic money laundering vulnerabilities presented by the U.S. real estate sector threatens U.S. national security and the integrity of the U.S. financial system.
According to its release, FinCEN explains that it has long been concerned with the potential for corrupt officials and illicit actors to launder the proceeds of criminal activity through the purchase of real estate in the United States and has worked to increase transparency in the real estate sector. Given the relative stability of the real estate sector as store of value, the opacity of the real estate market, and gaps in industry regulation, the U.S. real estate market continues to be used as a vehicle for money laundering and can involve businesses and professions that facilitate acquisitions of real estate in the money laundering process.
According to the release, the ANPRM will assist FinCEN in preparing a proposed rule that would enhance the transparency of the domestic real estate market on a nationwide basis and protect the U.S. real estate market from exploitation by criminals and corrupt officials.
Comments will be accepted for 60 days following publication in the Federal Register.
The full FinCEN release can be found here.