The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued a notice to financial institutions Tuesday regarding its observations of increasing payroll tax evasion and workers’ compensation fraud taking place in the U.S. residential and commercial real estate construction industries.

The notice is aligned with FinCEN’s ongoing implementation of the Corporate Transparency Act, which will include the establishment of a beneficial ownership information registry requiring certain reporting companies to file basic information with the agency about who controls their finances. The registry is set to take effect in 2024.

“[M]any payroll tax evasion and workers’ compensation fraud schemes involve networks of individuals and the use of shell companies and fraudulent documents,” said FinCEN in its notice. “… This notice aligns with the anti-money laundering/countering the financing of terrorism national priorities and provides financial institutions with an overview of the underlying schemes, red flag indicators, and specific SAR (suspicious activity report) filing instructions.”