Riza Aziz and 912 Hillcrest Road
L.A. real estate professionals say the Treasury Department’s latest attempt to sniff out dirty money in real estate deals has missed the mark.
The majority of agents, mortgage brokers and title insurers surveyed by The Real Deal said they expect new regulations governing the use of LLCs will do little to curb money laundering, since there are wide loopholes. Instead, the inability to hide the identity of all-cash buyers through such entities will put additional pressure on title insurers and escrow companies, minimally slow down deal flow, and put the privacy and personal information of high-net-worth individuals in jeopardy, they said.
“It’s like we’re penalizing the good, above-board people and it’s not going to stop anything, only slow things down and put people’s personal information at risk,” said Scott Paul, president of Better Escrow Service in Burbank. “It’s intrusive and carries the potential for identity theft to occur. There’s a lot of grumbling going on.” [more]