The Financial Crimes Enforcement Network (FinCEN) renewed its Geographical Targeting Orders (GTOs) requiring title companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate. The GTOs are identical to the November 2020 GTOs. The purchase amount threshold remains $300,000 for each covered metropolitan area.
The terms of this order are effective beginning May 5, 2021 and ending Oct. 31, 2021. GTOs continue to provide valuable data on the purchase of residential real estate by persons possibly involved in various illicit enterprises, according to FinCen. It said renewing the GTOs will further assist 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 certain counties within the following major U.S. metropolitan areas: Boston; Chicago; Dallas-Fort Worth; Honolulu; Las Vegas; Los Angeles; Miami; New York City; San Antonio; San Diego; San Francisco; and Seattle.
FinCEN thanked title insurance companies and the American Land Title Association for their continued assistance and cooperation in protecting the real estate markets from abuse by illicit actors.