FinCEN Orders Title Insurance Companies To Report All Cash Real Estate Transactions For Sales In Manhattan and Miami

The Financial Crimes Enforcement Network aka FinCEN issued new Geographic Targeting Orders. FinCen now requires title insurance companies to identify people behind LLCs who pay cash for high-end residential real estate in Manhattan and Miami.

The agency sees the new rules as a way to crack down on money laundering.

Therefore, The Financial Crimes Enforcement Network will require certain title insurance companies to identify and report the true beneficial owner of the legal entity involved in the transactions. 

The agency remains concerned with money laundering in cash real estate transactions with the use of shell companies.

FinCEN Director Jennifer Shasky Calvery wrote in a press release:

 We are seeking to understand the risk that corrupt foreign officials or transnational criminals may be using premium U.S. real estate to secretly invest millions in dirty money.

The Financial Crimes Enforcement Network will require title insurance companies to record and report the beneficial ownership information. The information will also be made available to law enforcement investigators as part of FinCEN’s database.

The information gathered from FinCEN will also advance law enforcement’s ability to identify persons involved in money laundering. It will also stop the ability for individuals to disguise their involvement in the purchase.

The GTOs will be in effect for 180 days beginning on March 1, 2016. 

 

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