Land deals under scrutiny

Manhattan and Miami focus of laundering probe

washington» The Treasury Department will begin tracking sales of highend real estate in two of the country’s most expensive markets — Miami and Manhattan — to try to crack down on money laundering.

The department’s Financial Crimes Enforcement Network said Wednesday that it will temporarily require certain title companies to identify individuals behind companies that buy properties exceeding $3 million in these two markets with all-cash transactions.

The government said it’s concerned that some of these real estate deals are made by corrupt foreign government officials or international criminals who use expensive real estate to launder dirty money. By using holding companies, some buyers might be able to disguise their identities.

The disclosure requirements would apply for 180 days beginning in March, according to the announcement. Under federal law, the government can demand these geographically targeted disclosures for up to six months but can then seek an extension.

High-end home prices in Manhattan and Miami have soared over the past year. The median Manhattan home sold for $1.15 million at the close of 2015 — a 17.3 percent leap from a year ago, according to the real estate brokerage Douglas Elliman.

That price put it at highs last glimpsed before the financial crisis erupted in 2008. The median sales price for a luxury unit in Manhattan was $6 million, a 25 percent jump from a year ago. Nearly half the purchases were all-cash.