Are you Subject to a FinCEN Targeting Order?

A FinCEN Targeting Order has Been Extended to Cash Purchases of Residential Property in Miami-Dade, Palm Beach and Broward Counties for $1,000,000 or more by a Legal Entity

In January of this year the Financial Crimes Enforcement Network (“FinCEN”), issued a Geographic Targeting Order (“GTO”) which requires offices and agents of various title insurance underwriters to collect and report information regarding certain purchases/sales of residential property. The GTO applies to residential properties located in Miami-Dade County with a sales price of $1,000,000 or more that closed on or after March 1, 2016 through August 27, 2016.  Additionally, the information applies to a purchase made without a bank loan where the buyer is a legal entity such as a limited liability company, corporation, partnership or similar business entity, but not a trust.

July 2016 GTO extends into Palm Beach and Broward Counties

On July 22, 2016, FinCEN issued another GTO, (“July 2016 GTO”). Starting August 28, 2016, the July 2016 GTO will include properties in Palm Beach and Broward Counties that meet the reporting criteria.

July 2016 GTO Expands Criteria to Include Personal & Business Checks

The original GTO requires reporting if the purchase price is paid in cash, a cashier’s check, a certified check, a traveler’s check, or a money order in any form. The original GTO did not require reporting if the purchase price was paid by a personal or business check. In addition to expanding the counties regulated and the timeframe through February 23, 2017, the July 2016 GTO adds personal and business checks to the list.

What does this mean to you?

Closing agents are required to collect and report information regarding real property purchases which meet ALL of the following:

  • The purchase of the residential property is located in Miami-Dade, Palm Beach or Broward County.
  • The purchase is completed on or after August 28, 2016, through February 23, 2017.
  • The purchase price is $1,000,000 or more.
  • The buyer is a legal entity, (e.g., limited liability company, corporation, partnership or similar business entity, but not a trust).
  • Purchase is made without a bank loan or other similar form of external financing (financing by a financial institution that is required to have an anti-money laundering policy).
  • Purchase price is paid, in whole or in part, with cash, cashier check, certified check, travelers check, money order in any form, personal or business check.  This does NOT include a sale where the purchase price is paid entirely by a wire transfer.
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *