Monthly Archives: July 2014

Money Laundering Made Easy or, Remember Kid, It’s All About Location, Location, Location…

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Today we once again turn our attention to the fascinating world of international money laundering. As I mentioned in a previous post, it’s no secret that in recent years the US government has made a concerted effort to close the Swiss-cheese-like loopholes in both the federal tax and criminal codes that have allowed so many to essentially completely dodge their tax obligations.

However, yesterday a landmark piece of legislation called the Foreign Account Tax Compliance Act (FACTA) took effect that may essentially put an end to the time-honored tradition of stashing your ill-gotten gains/Nazi blood money/FIFA World Cup bribes/despotic-dictator-corruption-skim, etc. in a handy-dandy numbered Swiss account.

This is great news if you’re a law-abiding citizen of the world, or a sovereign government trying to collect taxes that it’s owed, but it may significantly complicate matters for the criminal underworld and big-time tax dodgers. After all, once you steal a billion dollars, you gotta launder a billion dollars. Ask any old-school mafioso or Russian oligarch: Cleaning the money is often more difficult than stealing the money.

Fear Not, Thou Amoral Criminal, New York Real Estate Brokers Have a Solution For This Conundrum:

As detailed by New York Magazine, and referenced by Alison Griswold in today’s Slate, money is flowing into high-end Manhattan real estate transactions faster than you can say “Jamie Dimon”:

http://www.slate.com/blogs/moneybox/2014/07/02/new_york_city_real_estate_launder_money_without_swiss_banks.html

The original piece by Andrew Rice, perfectly titled “Stash Pad,” is fascinating and well worth a read:

http://nymag.com/news/features/foreigners-hiding-money-new-york-real-estate-2014-6/

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