US real estate’s reputation as a favourite destination for international money launderers has grown after a Treasury investigation confirmed fears that top-end property in New York, Miami and other cities is being used to channel illicit wealth.
The Financial Crimes Enforcement Network (FinCEN), a Treasury unit, found that one in three buyers who used shell companies for cash purchases of luxury property in leading cities had had the alarm raised about their financial dealings.
The role of US mansions, penthouses and beachside residences as a haven for tainted wealth has been under increasing scrutiny in recent years as it emerged that buyers had included figures such as Colombian drug lord Pablo Escobar and the son of Equatorial Guinea’s president.