OFAC and Money Laundering Regulations Bump Into Real Estate Transactions

09/09/2004

Ann Saegert and Keenan Kolendo presented "Would You Believeā€¦ OFAC and Money Laundering Regulations Bump into Real Estate" at the 38th Annual William W. Gibson, Jr. Mortgage Lending Institute.

In response to terrorist attacks on the United States on September 11, 2001, the Federal Government enacted new laws and amended existing laws designed to prevent terrorism, creating two separate compliance regimes. The first is based upon the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept Terrorism Act (often referred to as the USA PATRIOT Act, and herein referred to as the "Act"), which imposes prohibitions on certain kinds of financial transactions and imposes new detection responsibilities for companies and individuals involved in financial transactions. The second is based upon Executive Order 13224 (the "Executive Order"), which prohibits nearly all business dealings with thousands of individuals and entities named in the Executive Order and on the list of "Specially Designated Nationals & Blocked Persons" (the "OFAC List"), which is maintained and updated by the Department of the Treasury and the Department of State and published by the Office of Foreign Assets Control. The purpose of this paper is to outline: (i) the background of the Act and the Executive Order; (ii) the scope, prohibitions, requirements and penalties of the Act and the Executive Order, as they are applicable to the real estate industry, including lawyers; and (iii) the practical, policy and legal issues related to the application of the Act and the Executive Order to the real estate industry, including lawyers.

To view the full article, click on the Article linked below. To view the PowerPoint presentation, click on the Presentation linked below.

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