U.S. Plays Catch-up to Close Long-Standing Gaps in Anti-Money Laundering Laws: Part Two: Focus on Real Estate Transactions

Abstract

Part One of this Article focused on the U.S. Government’s anti-money laundering/contra terrorist financing (“AML”) efforts, certain deficiencies in the 2001 USA Patriot Act, which was enacted following the terrorist attacks of September 11, and the attempt to correct those deficiencies through passage of the Anti-Money Laundering Act of 2020 (the “2020 Act”). Part One mentioned that the 2020 Act is an enabling piece of legislation requiring that the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of Treasury issue regulations implementing the 2020 Act’s provisions. To date, however, no such regulations have been proposed, let alone implemented though, as discussed below, in December 2021 and pursuant to the 2020 Act, FinCEN did issue an advance notice of proposed rulemaking (“ANPRM”). Part One concluded that, in recognition of the limitations of the 2020 Act, the U.S. Government has undertaken additional steps to enhance its AML efforts. This Part Two will focus on three of those efforts, all involving the purchase of real estate.