In an effort to combat money laundering in the real estate sector, the Financial Crimes Enforcement Network (FinCEN) at the Treasury Department issued a Geographic Targeting Order (GTO) that will temporarily require certain U.S. title insurance companies to identify the natural persons behind companies used to pay “all cash” for high-end residential real estate in Manhattan and Miami-Dade County.  On February 3, NAR General Counsel Katie Johnson will meet with representatives of the Treasury Department and the Financial Action Task Force (FATF), an international body established by treaty to assess member states efforts to combat money laundering and terrorist financing.  NAR has argued, and Treasury agrees, that real estate agents and brokers are not in a position to detect money laundering since the funds involved in real estate transactions are handled through regulated financial institutions.  NAR has worked closely with FINCEN and Treasury to develop voluntary guidelines for real estate professionals to identify signs of money laundering.  NAR has promoted this information among its members through numerous website links, workshops at national meetings and various publications.

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.
Advertisement