U.S. title insurance companies must continue to identify the natural persons behind shell companies used in non-financed residential real estate purchases through Oct. 9 under an extension announced Monday by Treasury’s financial crimes enforcement arm.
Title companies are required by the Financial Crimes Enforcement Network (FinCEN) orders to file currency transaction reports (CTRs) on covered activity. The orders are aimed at generating data on residential real estate purchases by persons possibly involved in various illicit enterprises.
Monday’s announcement relates to an extension of FinCEN’s geographic targeting orders (GTOs) for such reporting in certain counties and major U.S. metropolitan areas in California, Colorado, Connecticut, Florida, Hawaii, Illinois, Maryland, Massachusetts, Nevada, New York, Texas, Washington, Virginia, and the District of Columbia.
“No changes have been made to jurisdictional coverage since the last issuance of these GTOs,” FinCEN said. The requirements, it said, apply to purchases where the price is $300,000 or more for each covered metropolitan area except the City and County of Baltimore, Md., where the threshold is just $50,000.
FinCEN has said previously that these targeting orders will be replaced by a nationwide reporting framework under a final rule set to take effect Dec. 5.
FinCEN Renews Residential Real Estate Geographic Targeting Orders
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