FinCEN Reporting

What is FinCEN?

The Financial Crimes Enforcement Network (“FinCEN”) is a bureau of the U.S. Department of the Treasury that collects and analyzes information about financial transactions, in order to combat domestic and international money laundering, terrorist financing, and other financial crimes.

Why do you care?

On October 22, 2023, FinCEN revised their Geographic Targeting Order (“GTO”) to all title insurance companies doing business in Texas. This new order adds transactions closing in Travis County effective beginning November 21, 2023. The order continues to require that title insurance companies collect and report information about certain residential real estate transactions in Bexar, Dallas, Harris, Montgomery, Tarrant, and Webb Counties. If your transaction is in one of these listed counties, your title company will require additional information from your purchaser prior to closing if your transaction meets all four of the below criteria:

• Sales Price over $300,000.00
• Property is Residential Real Property
• Purchaser is paying Cash, borrowing from a Hard Money Lender, or obtaining Seller Financing
• Purchaser is a Legal Entity (corporation, LLC, partnership, or other similar business entity legally formed in the U.S.)

What does the title company need?

The title company will require the full set of authority documents (Company Agreement, Partnership Agreement, Corporate Resolution, etc.), from a purchaser on a cash transaction. Additionally, an ALTA Information Collection Form needs to be properly completed by the purchaser and returned to the title company prior to closing. Click here for a link to the form. The form will require social security numbers, copies of ID’s, and other information on any beneficial owners who own 25% or more of the company. Your transaction cannot be scheduled to close until this information is received. The title company will use the ALTA Information Collection Form to generate a FinCEN Currency Transaction Report and file directly with FinCEN for further cataloging and processing within 72 hours of closing.

Should you have any questions, please reach out to your escrow team. Heritage Title Company is committed to excellence, and we look forward to working with you!

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