The Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Treasury Department, announced on Monday that it will again be expanding its Geographic Targeting Orders (GTOs). The new requirements go into effect on May 24, 2023 and are effective through October 21, 2023.
The GTOs require title companies to identify the people behind shell companies used in all-cash purchases of residential real estate.
FinCEN said it worked with local law enforcement to identify 14 additional counties to be included in the GTO coverage areas, including Litchfield County in Connecticut and Adams, Arapahoe, Clear Creek, Denver, Douglas, Eagle, Elbert, El Paso, Fremont, Jefferson, Mesa, Pitkin, Pueblo, and Summit counties in Colorado.
The metropolitan areas of Boston; Chicago; Dallas-Fort Worth; Las Vegas; Los Angeles; Miami; New York City; San Antonio; San Diego; San Francisco; Seattle; Washington, D.C.; Northern Virginia and Maryland (DMV) area; the city and county of Baltimore; Fairfield County, Connecticut; the Hawaiian Islands of Honolulu, Maui, Hawaii and Kauai; and Houston and Laredo, Texas, will retain their GTO designation.
The all-cash purchase threshold will remain $300,000 for all GTOs, with the exception of the city and county of Baltimore, which has a purchase threshold of $50,000.
According to FinCEN, 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, while the bureau works toward its goal of cracking down on individuals who use the U.S. real estate market to launder money.
FinCEN previously announced expansions to its GTOs in late October of 2022.
According to the National Association of Realtors (NAR) 2022 Profile of Homebuyers and Sellers report, just 22% of homebuyers financed their home purchase between July 2021 and June of 2022.
