Treasury Dept. will start crackdown on illicit money and luxury real estate

The U.S. Treasury Department says it will begin identifying and tracking secret buyers of high-end properties who make cash purchases through shell companies that hide the buyer’s identity. This is the first time the federal government has required real estate companies to disclose names behind cash transactions, and it is aimed at combating money laundering schemes.

There are concerns that this rule will cut into the luxury housing market that has boomed in recent years. The initiative will start in Manhattan and Miami-Dade County.