The U.S. Treasury Department is set to introduce a new proposed rule that would effectively end anonymous luxury home purchases in the coming weeks. This move comes after years of debate, and the proposed rule forms part of a larger initiative to increase transparency of business entities and curtail money laundering. A few key points to note include:

• Anonymous Purchases: Under the proposed rule, anonymous, foreign-connected purchase of high-end real estate using limited-liability companies or shell companies would no longer be permitted.

• Increased Monitoring: The new rule would require that buyers and members of limited-liability companies or shell companies provide their names to the Treasury Department.

• Curbing Fraud and Money Laundering: By forcing buyers to disclose their identity, the new rule seeks to reduce fraud and money laundering and increase transparency as to who owns luxury property.

The Treasury Department’s proposed rule would go a long way in increasing transparency in the luxury real estate market. It would curb fraudulent activities and money laundering, while also ensuring that law enforcement has access to information required to investigate any suspicious activities. On the other hand, it is also feared that this proposed rule might make it more difficult for legitimate buyers to acquire luxury properties in the U.S.

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