Venable partner Ed Wilson was quoted in a January 15, 2016 article in The Real Deal on a new federal requirement that title insurance companies must reveal the identities of secret buyers of luxury real estate. Under the rule, all members of an LLC must be identified. However, the rule is more lax for entities such as limited liability partnerships or trusts only require the identity of individuals owning more than 25 percent of the company.
"This is something that's been brewing for a pretty good while," said Wilson. Two years ago, he said, "an international anti-money laundering group known as the Financial Action Task Force recommended that beneficial ownership be disclosed for all shell corporations. As a result, the European Union finalized a directive in 2015 requiring the disclosure of beneficial ownership to central registries in each EU country."
Added Wilson, "The sellers of real estate are going to need title insurance in this game. They won't be able to complete the sale until the buyers give up the information."