The changes mean the identities of buyers of almost all-cash purchases in some counties will have to be reported to the Treasury’s Financial Crimes Enforcement Network (FinCEN).
In January 2016, in an effort to combat money laundering, FinCEN announced title insurance companies would be required to identify the human beings behind any cash-paying “shell companies” that buy high-end residential real estate in New York City and Miami at or above certain million-dollar price points.
Other “geographic targeting orders” (GTOs) put out by the department have expanded the list of affected markets and price points since then and earlier this month, the department issued its most widespread order yet. The order is effective Nov. 17, 2018, through May 15, 2019.
Now, title insurance providers in these areas are required to disclose the people behind any buyer companies for any all-cash transactions of residential real estate at or above $300,000:
- The Texas counties of Bexar, Tarrant, and Dallas;
- The Florida counties of Miami-Dade, Broward and Palm Beach;
- The boroughs of Brooklyn, Queens, Bronx, Staten Island and Manhattan in New York City, New York;
- The California counties of San Diego, Los Angeles, San Francisco, San Mateo, and Santa Clara;
- The City and County of Honolulu in Hawaii;
- The Nevada county of Clark;
- The Washington county of King;
- The Massachusetts counties of Suffolk and Middlesex; and
- The Illinois county of Cook (home of Chicago)
Given that the median sales price of a home in many of these counties is well above $300,000, that means virtually all cash purchases of homes in those areas will have to be reported to FinCEN.
BY ANDREA V. BRAMBILA Staff Writer – INMAN NEWS – November 2018
