The Financial Crimes Enforcement Network (FinCEN) announced the renewal of its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate.
These renewed GTOs are identical to the May 2020 GTOs. The purchase amount threshold remains $300,000 for each covered metropolitan area.
The terms of the order were effective beginning Nov. 6, 2020 and ending on May 4, 2021. FInCEN said the GTOs continue to provide valuable data on the purchase of residential real estate by persons possibly involved in various illicit enterprises. Reissuing the GTOs further assists in tracking illicit funds and other criminal or illicit activity, as well as inform FinCEN’s future regulatory efforts in this sector.
The GTOs cover counties within the following major U.S. metropolitan areas: Boston; Chicago, Dallas-Forth Worth; Honolulu; Las Vegas; Los Angeles; Miami; New York City; San Antonio; San Diego; San Francisco; and Seattle.
The GTO states, “If a covered business is involved in a covered transaction, then the covered business shall report the covered transaction to FinCEN by filing a FinCEN currency transaction report within 30 days of the closing of the covered transaction. Each currency transaction report filed pursuant to this order must be: completed in accordance with the terms of the order and the currency transaction report instructions (when such terms conflict, the terms of this order apply), and eFiled through the BSA eFiling system. To report a covered transaction, the covered business shall use the currency transaction report.”
Covered businesses must retain all records relating to compliance with this order for five years from the last day that this order is effective; store those orders in an manner accessible within a reasonable period of time; and make those records available to FinCEN, or any other appropriate law enforcement or regulatory agency, upon request.
FinCEN said it appreciates the continued assistance and cooperation of title insurance companies and the American Land Title Association in protecting the real estate markets from abuse by illicit actors.