FinCEN proposes new rule for residential real estate held in trusts or LLCs
1–10 of 76 posts
Re: FinCEN proposes new rule for residential real estate held in trusts or LLCs
#2I wonder if this is inspired at least in part by the Russian invasion of Ukraine. Their oligarchs are known to use this method quite a bit.
Re: FinCEN proposes new rule for residential real estate held in trusts or LLCs
#3I tried to parse a little of this so, FinCEN wants to know who profits off of real estate if you are a 5% equity share holder or 10% if at a director level in an organization.
Will FinCEN publish these records? It would defeat the purpose of putting a home in an llc for anonymity.
Under the proposed rule, persons involved in real estate closings and settlements would continue to be exempt from the anti-money laundering compliance program requirements of the Bank Secrecy Act. I.e. loans, banks.
Re: FinCEN proposes new rule for residential real estate held in trusts or LLCs
#4It is common for liberty-oriented officials to put their own home into an LLC and have an appointed officer/manager as the public-facing contact.
I am quite sure that rich and powerful people will do some decent but firm pushback if FinCen goes too far in making records public.
Edited: replaced 'privacy-oriented' with 'liberty-oriented' in light of Bruce Schneier's blog.
Re: FinCEN proposes new rule for residential real estate held in trusts or LLCs
#5It is common for liberty-oriented officials to put their own home into an LLC and have an appointed officer/manager as the public-facing contact. I am quite sure that rich and powerful people will do some decent but firm pushback if FinCen goes too far in making records public. Edited: replaced 'privacy-oriented' with 'liberty-oriented' in light of Bruce Schneier's blog.
If they have nothing to hide they have nothing to fear. I would take the hypothetical fear and pushback by these "types" as a strong positive signal that this is an effort that is vitally worth doing for society.
Re: FinCEN proposes new rule for residential real estate held in trusts or LLCs
#6I tried to parse a little of this so, FinCEN wants to know who profits off of real estate if you are a 5% equity share holder or 10% if at a director level in an organization. Will FinCEN publish these records? It would defeat the purpose of putting a home in an llc for anonymity. Under the proposed rule, persons involved in real estate closings and settlements would continue to be exempt from the anti-money launderi…
[deleted]
Re: FinCEN proposes new rule for residential real estate held in trusts or LLCs
#7This is deeply needed, one of the big causes of housing inflation is using it to launder money. Higher housing costs are better because you can launder more. Its like when rich people can't have a money trail for some shady activity so they sell art to each other for a wild amount. This will require all owners to be named instead of a nameless llc. Should help curb the process.
Re: FinCEN proposes new rule for residential real estate held in trusts or LLCs
#8I tried to parse a little of this so, FinCEN wants to know who profits off of real estate if you are a 5% equity share holder or 10% if at a director level in an organization. Will FinCEN publish these records? It would defeat the purpose of putting a home in an llc for anonymity. Under the proposed rule, persons involved in real estate closings and settlements would continue to be exempt from the anti-money launderi…
The records aren't publicly available - they'll provide them to the Feds and to anyone who provides a valid court order;
https://www.fincen.gov/news/news-releases/fact-sheet-benefic....
Re: FinCEN proposes new rule for residential real estate held in trusts or LLCs
#9I think this is great for AML, and also for making the activities of institutional buyers of real estate a little clearer. I'm reminded of this article specifically: https://www.sfchronicle.com/projects/2022/veritas-san-franci...
Re: FinCEN proposes new rule for residential real estate held in trusts or LLCs
#10It is common for liberty-oriented officials to put their own home into an LLC and have an appointed officer/manager as the public-facing contact. I am quite sure that rich and powerful people will do some decent but firm pushback if FinCen goes too far in making records public. Edited: replaced 'privacy-oriented' with 'liberty-oriented' in light of Bruce Schneier's blog.
If they have nothing to hide they have nothing to fear. I would take the hypothetical fear and pushback by these "types" as a strong positive signal that this is an effort that is vitally worth doing for society.
They have to fear swatting. If you’ve got the time and knowledge of where the individual likely lives, a hunting app for instance will show who owns each land plot in clear-text lol.