This report reviews 25 cases derived from media articles, indictments and civil complaints, involving illicit or highly suspicious funds entering the U.S. commercial real estate market in the past twenty years. It finds at least $2.6 billion of such investments, originating in 14 countries and reaching commercial properties in 22 U.S. states. The properties purchased are just as diverse, from hotels and office buildings to store fronts, industrial sites and even a horse training facility. Politically Exposed Persons or oligarchs, who typically have close ties to political power, feature in 14 of the 25 cases reviewed.
Money-Laundering-Risks-in-Commercial-Real-Estate_ACDC_GFI_FACT.pdf Related Articles
Reports
Behind a Wall: Investigating Company and Real Estate Ownership in France
Despite transparency rules, the vast majority of corporate-owned real estate in France is held anonymously. At the heart of the problem lies non compliance: almost a third of all companies have not declared who ultimately owns them.
Reports
The impact of beneficial ownership transparency on illicit purchases of US property
In 2016, the US government started requiring that corporate all-cash buyers of residential real estate declare their beneficial owners. In this working paper, we analyze the effectiveness of the policy using data from Zillow on millions of transactions. Our results show the reform had no deterrent effect on corporate all-cash purchases in the 20 targeted counties.
Reports
Public Money for Private Equity: Pandemic Relief Went to Companies Backed by Private Equity Titans
Hundreds of companies owned or backed by some of the most well-financed private equity firms in the US secured an estimated $5.3 billion in public funds under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).