The Financial Crimes Enforcement Network (FinCEN) has renewed its Geographic Targeting Orders (GTOs) aimed at identifying the natural persons behind shell companies used in non-financed purchases of residential real estate. The terms of the GTOs will be effective from April 19, 2024, to October 15, 2024.

According to FinCEN, the GTOs provide valuable data on the purchase of residential real estate by individuals potentially involved in illicit activities. By renewing these orders, FinCEN aims to enhance efforts in tracking illicit funds and criminal activities, as well as informing regulatory actions in the real estate sector. The GTOs cover specific counties and major metropolitan areas in several states, including California, Colorado, Florida, New York, and Texas, among others.

In a statement, FinCEN expressed gratitude for the support and collaboration of title insurance companies and the American Land Title Association in safeguarding real estate markets from exploitation by illicit entities.

Furthermore, FinCEN recently issued a notice of proposed rulemaking for an anti-money laundering regulation in the residential real estate industry. The comment period for the proposed rule closed on April 16, 2024. The renewal of the GTOs will allow FinCEN to review and consider all comments received during this period.

For any inquiries about the Orders, individuals are encouraged to contact FinCEN’s Regulatory Support Section at FRC@FinCEN.gov. Additionally, a copy of the GTO and frequently asked questions about these orders are available on FinCEN's website.