Enforcement of AntiMoney Laundering” (“AML”) laws
• Track purchases by terrorists, drug traffickers, corrupt officials, etc.
• Detect, deter and disrupt terrorist financing networks
Effect on Real Estate Transactions
• Govt. found “Bad Guys” buying real estate with “dirty money”
• Lack of reporting through banks and lenders b/c no loans utilized
• GTO requires reporting underlying ownership for “Covered" Transactions.
So, what does this mean to you? Possibly nothing at all. But in San Mateo and
Santa Clara county on average approximately 30% of houses are cash
What is Covered by FINCEN?
• All cash purchases of residential real estate where the buyer is a legal entity or trust
• Basic transaction information (closing date, purchase price, parties' names, etc.)
• Beneficial ownership info (focused on buyer)
• Generally, the settlement agent, with guidelines if there is no settlement agent
When? • 30 days after closing
So, something to keep in mind in the future when looking to buy a home. I’m not a
big fan of unnecessarily providing information to any entity, government or otherwise.
The roll out on this has been pushed out numerous times but should come into
If you would like more information, I do have a slide deck I can share, I will be attending a training in a few weeks to get a better idea of the current rules of engagement.
