FinCEN proposes new rule for residential real estate held in trusts or LLCs

I 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.<p>Will FinCEN publish these records? It would defeat the purpose of putting a home in an llc for anonymity.<p>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.

It is common for liberty-oriented officials to put their own home into an LLC and have an appointed officer&#x2F;manager as the public-facing contact.<p>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.<p>Edited: replaced &#x27;privacy-oriented&#x27; with &#x27;liberty-oriented&#x27; in light of Bruce Schneier&#x27;s blog.

We have a business in Las Vegas incorporated as an LLC and incorporated in Wyoming to hold real estate that we purchase overtime and leave to our kids and just yesterday we were notified that FinCen is requesting names, contact information, IDs (passport, drivers license) and percentage owned in the corporation. I would have thought they would have had all that information prior from our filings. In my eyes there’s nothing wrong with any of this, it’s all standard procedure but my assumption is that it’s all rooted from an underlying issue, the US balance sheet keeps going up and the government is looking to cross all Ts and dot all I’s on where they can collect. The underlying issue never gets fixed, that’s that the government can’t stop spending. Fix government, fixes the issue.

How do these trusts, LLCs, etc. work for inheritance? Can I bypass inheritance issues by, say, putting my house in a trust and making my kid one of the &quot;owners&quot; of the trust? Then when I pass away, s&#x2F;he gets control of the trust and thus own the house?

This 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&#x27;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.

I 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.

I think this is great for AML, and also for making the activities of institutional buyers of real estate a little clearer. I&#x27;m reminded of this article specifically: <a href="https:&#x2F;&#x2F;www.sfchronicle.com&#x2F;projects&#x2F;2022&#x2F;veritas-san-francisco-landlord&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.sfchronicle.com&#x2F;projects&#x2F;2022&#x2F;veritas-san-franci...</a>