Estate and Succession Planning
Dean Mead’s Estate and Succession Planning Department is one of the largest and most respected groups of estate planning attorneys in Florida. We are frequently…
Dean Mead’s Estate and Succession Planning Department is one of the largest and most respected groups of estate planning attorneys in Florida. We are frequently…
Dean Mead’s Tax Department handles tax planning issues for businesses and individuals. The attorneys in our department have extensive experience in a full range of…
Published: May 7, 2024
The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, recently proposed a rule aimed at enhancing the transparency in residential real estate transactions and transfers. The intent is to curb money laundering and fraud in the real estate sector through similar requirements to those imposed by the Corporate Transparency Act.
This would require, for example, insurance companies to identify the individuals behind shell companies and other legal entities. These efforts are also similar to the existing Bank Secrecy Act (BSA) which requires the collection of beneficial ownership information where residential real estate is purchased for cash exceeding $300,000 in certain targeted areas. (In Florida this includes Miami-Dade, Broward, Palm Beach, Hillsborough, Pasco, Pinellas, Manatee, Sarasota, Charlotte, Lee and Collier Counties.)
However, unlike the BSA, this new rule would apply nationwide and would have no minimum value or purchase price to require reporting. Because of the removal of these limitations the new rules will include both sales of property as well as gratuitous transfers to a landowner’s trust or other entity.
What are the potential business implications?
—
Click HERE to review the Fact Sheet published by FinCEN about the proposed rule. Our team continues to monitor this proposed rule and will provide updates, as available.