Developers, Banks Will Have to Know Who Is Behind Shell Companies
Federal law enforcement is evaluating a proposed rule to combat money laundering through shell companies. The rule is likely to add a new level of complexity to real estate transactions, as additional levels of due diligence will be required from real estate developers and financial institutions to identify beneficial owners – as well as the legal owners – of accounts. Legal and real estate experts predict that high-profile investigations and enforcement actions by the U.S. Treasury may be imminent.
