The Financial Crimes Enforcement Network (FinCEN) has renewed and expanded its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate. 

The terms of the GTOs were effective on October 27, 2022, and end on April 24, 2023. FinCEN renewed the GTOs that cover certain counties within the following major U.S. metropolitan areas: Boston, Chicago, Dallas-Fort Worth, Las Vegas, Los Angeles, Miami, New York City, San Antonio, San Diego, San Francisco, Seattle, the District of Colombia, Northern Virginia, and Maryland area (DMV), as well as the City and County of Baltimore, the County of Fairfield, Connecticut, and the Hawaiian Islands of Honolulu, Maui, Hawaii, and Kauai. 

In conjunction with law enforcement partners, FinCEN has identified additional regions that present a greater risk for illicit finance activity through all-cash purchases of residential real estate. The expanded geographic coverage of the GTOs now includes the counties encompassing the Texas cities of Houston and Laredo. The effective period of the GTOs for purchases in these newly added areas begins on November 25, 2022.

Would you like to stay up-to-date on important regulatory and compliance updates? Make sure to subscribe to our Compliance Newsletter so you don't miss anything!