Beyond GTOs: FinCEN Proposes Expansion Of Industry Reporting Requirements

anticadmin — Thu, 15 Feb 2024 15:56:00 +0000

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a on Feb. 7 to expand its efforts on a permanent basis to combat and deter money laundering through the residential real estate sector.

According to the FinCEN announcement, the proposed rule would require professionals involved in real estate closings and settlements to report information to FinCEN about non-financed transfers of residential real estate to legal entities and trusts.

“Illicit actors are exploiting the U.S. residential real estate market to launder and hide the proceeds of serious crimes with anonymity, while law-abiding Americans bear the cost of inflated housing prices,” said FinCEN Director Andrea Gacki. “Today marks an important step toward not only curbing abuse of the U.S. residential real estate sector but safeguarding our economic and national security.”

Expansion of GTO efforts

Since 2016, FinCEN has issued multiple Geographic Targeting Orders (GTOs) requiring title insurance companies to file reports on all-cash purchases having specific dollar thresholds in designated geographic areas. These GTOs last for six months at a time. The most recent GTO was issued in October 2023 and expanded the list of affected venues.

According to FinCEN’s , expanded reporting requirements would apply on a permanent basis across the entire country, without limit to specific geographic locations or a dollar threshold. The agency will accept comments on the new proposed rule for a 60-day period following its publication in the Federal Register, scheduled for Feb. 16. According to the American Land Title Association’s (ALTA) of Feb. 8, FinCEN has proposed that the final rule become effective one year after it is issued.

“We are still reviewing the proposed rule and will work to ensure that FinCEN considers the information they are collecting under the new Beneficial Ownership rule, among other things, so as not to be unnecessarily duplicative and also provide clarity regarding the obligations of all real estate parties under the rule,” said Diane Tomb, ALTA’s chief executive officer. “We also appreciate, and intend to continue, the ongoing dialogue with FinCEN to craft a tailored approach limiting the transactions that must be reported to those of the greatest concern and providing avenues to help reduce the compliance burden on title and settlement companies.”

Proposed reporting structure

The proposed rule would require reporting on transfers of single-family houses, townhouses, condominiums, and cooperatives, as well as buildings designed for occupancy by one to four families. Going a step beyond the GTOs, it would also require reporting on transfers of vacant or unimproved land that is zoned, or for which a permit has been issued, for occupancy by one to four families. Furthermore, both purchasing entities and transferee trusts are reportable unless a specific exception is applicable.

ALTA’s Feb. 8 blog summarizes reportable information under the proposed rule to include (but is not limited to) the following:

Name, address and taxpayer identification number (TIN) for the transferee and transferor.
Beneficial owner information for the transferee and anyone signing the transfer documents. (names, date of birth, addresses and TINs for those individuals).
Name, DOB, address and TIN for all transferors on title or the beneficial owners if the seller is an entity.
Address and legal description of the property.
information about the payments made by or on behalf of the transferee.
Information about any hard money or other lender not subject to anti-money laundering rules. That participated in the deal.
Individuals representing the transferee entity or transferee trust.
The business filing the report.

For a more detailed summary of requirements and exceptions under the proposed rule, please see the published by FinCEN. At �ǿմ�ý �ǿմ�ý, we are committed to keeping you updated on legislation and regulations that affect your business. Stay tuned for more, as the comment period progresses.

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�ǿմ�ý �ǿմ�ý Meets Rigorous SSAE 18 Type II Standards for the 7th Consecutive Year

anticadmin — Sun, 16 May 2021 16:34:00 +0000

�ǿմ�ý’s Agent Quality Management System Passes Service Organization Control Exam.

Longmont, Colo. – (March 23, 2021) – �ǿմ�ý, a unique title insurance underwriter that partners with independent agents to improve their competitive position in the marketplace, announces the successful completion of the Service Organization Control (SOC) 1 SSAE 18 Type II examination for the seventh consecutive year.

By completing the examination, �ǿմ�ý �ǿմ�ý will receive mention in an AICPA-endorsed report, stating that the company has maintained effective controls over its Agent Quality Management System. It also verifies that �ǿմ�ý �ǿմ�ý’s processes for approving, monitoring and reviewing its agents, which results in their designation as Authorized Service Providers, include rigorous quality standards.

Additionally, SSAE 18 certified compliant status validates �ǿմ�ý �ǿմ�ý’s systems for minimizing customers’ risk of financial loss in connection with real estate closings. As a result, lenders relying upon �ǿմ�ý �ǿմ�ý’s oversight of its agents and Authorized Service Provider program receive additional assurance that processes are complete and accurate.

“�ǿմ�ý �ǿմ�ý was the first title insurance underwriter in the nation to obtain compliant status and is the only title insurance underwriter to achieve compliant status for seven consecutive years,” said David Sinclair, President and CEO of �ǿմ�ý �ǿմ�ý. “This certification provides further independent assurance of our agent oversight systems to lenders. Providing lenders with unequivocal evidence of the quality of our agents through an independently audited system is a top priority of �ǿմ�ý �ǿմ�ý.”

A-Lign Certified Public Accountants of Tampa, Fla., performed the engagement and certification. The unqualified satisfactory report, with no exceptions, was issued January 11, 2021, and the audit scope covered the full year 2020.

�ǿմ�ý �ǿմ�ý distinguishes itself from competitors by combining strong underwriting capability with independent agents’ in-depth knowledge of local markets. The result is a nationwide network with deep roots in local communities, and a wealth of expertise that is flexible, nuanced, and continuously growing.

Visit for additional information.

MEDIA INQUIRIES

Cathie Beck
Capital City Public Relations
e: cathie@capitalcitypr.com
p: 303-241-0805

ABOUT ALLIANT NATIONAL TITLE INSURANCE COMPANY

The Independent Underwriter for The Independent Agent^SM – �ǿմ�ý �ǿմ�ý believes in empowering people to thrive.
The company protects the dreams of property owners with secure title insurance and partners with 500+ trusted independent title agents as a licensed underwriter in 27 states and the District of Columbia

The post �ǿմ�ý �ǿմ�ý Meets Rigorous SSAE 18 Type II Standards for the 7th Consecutive Year appeared first on �ǿմ�ý �ǿմ�ý Title Insurance Co..

Regulatory Compliance Archives - �ǿմ�ý �ǿմ�ý Title Insurance Co.

Beyond GTOs: FinCEN Proposes Expansion Of Industry Reporting Requirements

�ǿմ�ý �ǿմ�ý Meets Rigorous SSAE 18 Type II Standards for the 7th Consecutive Year