AlternativeFreePress.com

Canada has a money laundering problem, and it has been causing real estate prices in Toronto & Vancouver to soar to ridiculous levels. More than half of B.C.’s most expensive homes are owned by secret shell companies. Of course, this is not a problem exclusive to Canada.

In February 2016, the United States Treasury’s FinCEN enacted “GEOGRAPHIC, ANTI-MONEY-LAUNDERING, TARGETING ORDERS of 2016”, and as a result found that half the real estate being purchased was with illicit funds. John Tobon, U.S. Homeland Security Investigations Deputy Special Agent in Charge for South Florida, told the Miami Herald in January. “We come across real estate being purchased with illicit funds once every other case.”

Within U.S. markets where the anti-money laundering efforts have targeted, prices have started to drop significantly:

Manhattan Apartment Prices Continue To Slide

Manhattan Luxury Housing In Freefall: J.Crew CEO Slashes Tribeca Loft Price By Over 40%

Miami luxury condo prices take a plunge

SF home prices see big drop in January

The US crack down seems to be working, hopefully The Government of Canada acts soon.

Source:
Feds: “We Come Across Real Estate Being Purchased With Illicit Funds Once Every Other Case”