By PAUL O’DONOGHUE, Senior Correspondent
U.S. title insurance companies in certain areas have to identify the owners of shell companies using cash to buy real estate, according to FinCEN Geographic Targeting Orders (GTOs) .
The organization, the AML unit of the U.S. Treasury, said the GTOs are effective “beginning April 15, 2025, and ending on October 9, 2025”.
The move renews previous GTOs, which were in place in 2024.
“The [orders] continue to provide valuable data on the purchase of residential real estate by persons possibly involved in various illicit enterprises,” FinCEN said in a statement.
“Renewing the GTOs will further assist in tracking illicit funds and other criminal or illicit activity.”
Title insurance protects a policyholder against challenges to rightful ownership of property. Challenges may arise from circumstances of past ownerships. Because of this, title insurance firms must identify the true owner of a property.
The GTOs cover counties and major U.S. metropolitan areas in:
- California
- Colorado
- Connecticut
- Florida
- Hawaii
- Illinois
- Maryland
- Massachusetts
- Nevada
- New York
- Texas
- Washington
- Virginia
- The District of Columbia.
The exact locations can be viewed [HERE].
The purchase price threshold remains $300,000 for each covered metropolitan area. The exception is the City and County of Baltimore, where the purchase price threshold is $50,000.
“FinCEN appreciates the continued assistance and cooperation of title insurance companies and the American Land Title Association in protecting the real estate market from abuse by illicit actors,” it said.
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