Nicholas Nehemas and Rene Rodriguez:
When a company called the Flower of Scotland paid $1.13 million — in cash — for a three-bedroom condo in Sunny Isles Beach last year, it had to do something unusual: tell the federal government who its real owner was.
In years past, the Delaware-based shell company could have put down the money and walked away with a new condo — and a boat slip near Dumfoundling Bay — no questions asked. But that secrecy was stripped away in early 2016 when the U.S. Treasury Department imposed a temporary transparency rule on Miami-Dade County and Manhattan, two of the nation’s most attractive real estate markets to dark money.
The simple disclosure requirement offered the opportunity for an enticing experiment: If regulators asked anonymous cash buyers like the Flower of Scotland to reveal their true owners, what would happen?