U.S. to unveil plan to identify owners behind transactions

WASHINGTON, Dec 6, Reuters - The Biden administration wants to shed new light on transactions where people pay cash for houses as part of a broad anti-corruption drive promoted in the U.S. Summit for Democracy officials said.

In June of this year, President Joe Biden ordered officials to craft policies to thwart illegal activities. Their initial proposals are outlined in a 38-sided U.S. national security strategy on countering corruption released on Monday.

The Treasury Department said it was working on a new rule to identify who is behind all-cash real estate transactions, and to see if those purchases are being used to hide illegal profits.

Treasury said that the ability of proximate actors to launder criminal proceeds through the purchase of real estate threatens U.S. national security and the integrity of the U.S. financial system. The agency may require more investment funds, such as hedge funds and private equity vehicles, to engage in anti-money laundering efforts. They expect to announce as soon as this week new efforts to create a database identifying the owners behind shell companies that used to move money anonymously.

The moves came after a series of documents including October's release of the Pandora Papers raised questions about how government officials and others discreetly move money abroad, possibly to dodge taxes or accountability for wrongdoing.

Biden will host a virtual summit with 110 participants on Thursday and Friday in an effort to confront what his administration sees as authoritarian forces led by China and Russia.