Financial safety

FinCEN Expands Reach Of Real Estate Geographic Targeting Orders Beyond Manhattan And Miami

The Financial Crimes Enforcement Network (FinCEN) announced Geographic Targeting Orders (GTO) that will temporarily require US title insurance companies to identify the natural persons behind shell companies used to pay “all cash” for high-end residential real estate in six major metropolitan areas.

In its announcement, FinCEN said it “remains concerned that all-cash purchases (i.e., those without bank financing) may be conducted by individuals attempting to hide their assets and identity by purchasing residential properties through limited liability companies or other opaque structures.”

US and Western counterterrorism and counterdrug intelligence officials have said sophisticated state-sponsored terrorist organizations and transnational criminal organizations are using these entities to launder the illicit proceeds of their enterprises.

“To better understand this vulnerability, FinCEN issued similar GTOs earlier this year covering transactions in Manhattan and Miami-Dade County, Florida,” FinCEN stated, saying, “The GTOs announced will expand upon the valuable information received from the initial GTOs.”