The Financial Crimes Enforcement Network (FinCEN) recently re-issued a Geographic Targeting Order (GTO). It is an order from the Director of the agency, and it covers counties in 12 major metropolitan areas. The GTO demands that U.S. insurance companies report purchases of at least $300,000 made for real estate properties with cash or cryptocurrency.
FinCEN to Track Transactions Illegal Activities
According to FinCEN, this move is meant to track transactions carried out by people that are involved in illegal activities. The regulator also revealed that money from drug trafficking, fraud, and foreign corruption, were sometimes siphoned into real estate.
FinCEN also noted that;
Reissuing the GTOs will further assist in tracking illicit funds and other criminal or illicit activity, as well as inform FinCEN’s future regulatory efforts in this sector.
With this new order, “Natural persons” who make transactions surpassing the threshold that has been set, are to be reported to this law enforcement. Previously, this amount varied for each of these locations. But now, it is the same for all metropolitan areas regulated by the agency.
The Reviewed GTO covers 12 regions in the US
Therefore, Las Vegas, Dallas-Fort Worth, Chicago, and Honolulu are some of the areas affected by the revised GTO. Others include New York City, Los Angeles, Miami, San Francisco, San Antonio, San Diego, and Seattle.
It is also worthy to note that these counties include the Texas counties of Bexar, Tarrant, or Dallas and the Florida counties of Miami-Dade, Broward, or Palm Beach. The Boroughs of Brooklyn, Queens, Bronx, Staten Island, or Manhattan in New. There’s also the California counties of San Diego, Los Angeles, San Francisco, San Mateo, or Santa Clara.
Regulator’s Attention is to be Drawn to Transactions up to $300,000
Any house or property bought in these regions for $300,000 or more, the regulators’ attention will be drawn. Here, insurance companies have been mandated to fill a FinCEN Currency Transaction Report within a 30-day time frame after such transactions have been made. As is the case of any regulatory order, there are penalties for not complying.
FinCEN’s motive with this update is to keep both the buyer and the insurance companies aware of the new regulations governing residential real estate. On the other hand, crypto enthusiasts are excited to know that these properties can be purchased using cryptocurrencies. Different sectors of the industry are imbibing it and not just Banks and other financial institutions.