The Basics: Money Laundering and Terrorist Financing

Future regulation of U.S. real estate brokers and agents may occur regarding the growing problems of money laundering and terrorist financing.  To help minimize the need for targeted regulations, brokers and agents need to become aware of how real estate is currently being used in illegal financing schemes and begin to take steps to play their part in the global fight against money laundering and terrorist financing.  While real estate currently is not commonly used as a vehicle for illegal financing activities, bad actors tend to move into sectors where little attention is being paid, so brokers and agents must be alert to the possibility.

To do their part, NAR real estate professionals should familiarize themselves with available tools and educate themselves about what is being done, globally and in the United States, to prevent real estate from being used in illegal financing activities. By practicing self-regulation, real estate brokers and agents can do their part in the global fight against money laundering and terrorist financing, while at the same time minimizing the need for targeted regulations which may prove unnecessary, costly and burdensome.

Latest News:  ANPR Regarding Anti-Money Laundering Program Requirements for "Non-Bank Residential Mortgage Lenders and Originators" (PDF: 374K) - August 20, 2009

Resources
There are several agencies and organizations, both in the U.S. and abroad, that are combating money-laundering and terrorist financing. These entities provide guidance and support on these important issues.
    Financial Action Task Force   
    Financial Crime Enforcement Network (FinCEN)
    Office of Foreign Asset Control (OFAC) 
    United States Internal Revenue Service