Stream of Foreign Wealth Flows to Elite New York Real Estate

Purchase of high-cost US real estate has become less transparent even as the nation tries to battle tax evasion with overseas accounts. Louise Story and Stephanie Saul investigate purchases of elite condos by foreign billionaires in the heart of Manhattan for the New York Times. The source of money for such sales is difficult to identify with US laws permitting movement of funds through shell companies. Story and Saul report: “a majority of owners have taken steps to keep their identities hidden, registering condos in trusts, limited liability companies or other entities...” Concerns are raised about the alleged corruption of condo buyers whose identities have been revealed and linked to housing and environmental violations and financial fraud. Federal laws expect banks to take “reasonable steps to ensure that they do not knowingly or unwittingly assist in hiding or moving the proceeds of corruption,” Story and Saul report. “But such checks are not required on money flowing into the country through shell companies to purchase high-end real estate.” With condo values tripling during the last decade, industry profits are huge. – YaleGlobal