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CLTA FinCEN Resource Center

 

FinCEN Extends Their GTO Reporting Requirements Again and Adds the County of Honolulu - Effective August 22, 2017

The Financial Crimes Enforcement Network (FinCEN) recently announced Geographic Tracking Orders (GTOs) will be extended, but there will be a brief interim period between the expiration of the former GTO and the renewal.

As a reminder, GTOs require all title insurers to acquire and report information from transactions meeting certain criteria.

The current GTOs, set to expire on August 22, 2017, will not be immediately renewed. Transactions closing between August 23, 2017 and September 21, 2017 do not have to be reported to FinCEN.  There will be no requirement to obtain information about the identity of Beneficial Owners of purchasing business entities for transactions closing during that period.

Title company employees should consult with their management as to how the company will deal with this interim time period and how it will affect your company’s procedures.

FinCEN will issue new GTOs effective September 22, 2017.  The new GTO’s will include the same terms as the current GTOs with the following additions:

  1. Wire transfer will join currency, cashier’s check, certified check, traveler’s check, personal check and money order as a form of payment creating a covered transaction.

  2. The city and county of Honolulu will be added to the geographic areas subject to the current GTOs.

FinCEN’s GTOs require all title insurers and title insurance agents to report certain information about “Covered Transactions.”

 

To qualify as a “Covered Transaction,” the purchaser must be a business entity such as a corporation, LLC or partnership and acquire residential property without obtaining an institutional mortgage.  GTOs are limited to defined geographic areas and transactions meeting purchase price thresholds.

 

Any questions about the Orders should be directed to the FinCEN Resource Center at 800-767-2825.

 

Frequently asked questions regarding these GTOs are available here.

 

Resources

Additional Resources

FinCEN Forms

Developed in partnership with the American Land Title Association, individuals can use these fillable PDF questionnaire forms to determine whether a transaction falls under reporting obligations and Information Collection Form:

Real Estate Professional FinCEN Infographic

Intended for title companies to distribute to real estate professionals with which they are in contact, this infographic quickly breaks down the basics of the FinCEN Geographical Targeting Orders: CLTA FinCEN Real Estate GTO Infographic.

Recorded Webinar:  re: FinCEN Order

CLTA, with the help of ALTA, recorded a webinar which was presented on August 19th.  The webinar outlines the order and how to comply. All title insurance agents and underwriters in San Diego, Los Angeles, San Francisco, San Mateo and Santa Clara Counties, or anyone who is involved in handling transactions in these counties, are urged to view this recorded webinar.  

NOTE: The above presentation is meant for informational purposes only and the statements and opinions provided are not those of CLTA or its member companies. CLTA strongly recommends that underwritten title companies, independent escrow companies and real estate professionals consult directly with the title insurance companies with which they do business to discuss the title insurer’s precise expectations and protocols associated with FinCEN reporting.

California Land Title Association


1215 K Street #1816 Sacramento, CA 95814-3905
Email: mail@clta.org  |  Phone: 916-444-2647  |   Fax: 916-444-2851