United States: FinCEN Expands GTOs And Closes Wire Transfer Loophole

Andres Fernandez is a Partner and Elena Otero is an Associate in our Miami office .


  • The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) continues to expand its Geographic Targeting Orders (GTOs) with respect to beneficial ownership transparency in real estate transactions.
  • It is clear that FinCEN remains concerned that "all cash" purchases of real estate are being conducted by individuals seeking to hide assets and launder money through opaque entity structures.
  • The revised GTOs, issued on Aug. 22, 2017, add the City and County of Honolulu, Hawaii, to the list of jurisdictions subject to the GTOs (for transactions in an amount of $3 million or more) and also expand the GTOs to include wire transfers within the definition of "all cash" transactions. The addition of wire transfers to the triggering transactions closes a notable loophole left by the prior GTOs.

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) on Aug. 22, 2017, continued expanding its Geographic Targeting Orders (the GTOs) with respect to beneficial ownership transparency in real estate transactions. The revised GTOs issued on Aug. 22 expanded the prior GTOs by, among other changes, adding additional jurisdictions to the previous GTOs and closing a loophole in the prior GTOs by including wire transfers as part of the triggering transactions. The Aug. 22 GTOs are effective beginning on Sept. 22, 2017, and are scheduled to expire on March 20, 2018.


FinCEN issued GTOs on Jan. 13, 2016, that temporarily required various United States title insurance companies to identify the natural persons behind companies1 used to pay "all cash"2 for high-end residential real estate purchased in the Manhattan borough of New York City and in Florida's Miami-Dade County in amounts of $3 million and $1 million or more, respectively. The Jan. 13 GTOs were effective for 180 days3 as of March 1, 2016, and expired on Aug. 27, 2016.

The GTOs required that the affected title companies file FinCEN Form 8300 within 30 days from the closing date reporting the identity of the individual primarily responsible for representing the buyer entity and the beneficial ownership of the entity, defined in the Jan. 13 GTOs as the individuals who own, directly or indirectly, 25 percent or more of the equity interests in the entity. Subsequently, on July 27, 2016, FinCEN took additional action and issued supplemental GTOs, effective as of Aug. 28, 2016, that expanded the reach of the Jan. 13 GTOs. The July 27 GTOs were directed to all boroughs of New York City, including Manhattan; Miami-Dade, Broward and Palm Beach counties in Florida; Los Angeles, San Francisco, San Mateo, Santa Clara and San Diego counties in California; and Bexar County in Texas. The July 27 GTOs set monetary thresholds ranging from $500,000 to $3 million, depending on the jurisdiction.

The New Additions

Adding to the prior GTOs, FinCEN has now, in its Aug. 22, 2017, GTOs, added the City and County of Honolulu, Hawaii, to the list of jurisdictions subject to the GTOs (for transactions in an amount of $3 million or more) and also expanded the GTOs to include wire transfers within the definition of "all cash" transactions. The addition of wire transfers to the triggering transactions closes a notable loophole left by the prior GTOs. The Aug. 22 GTOs are effective beginning on Sept. 22, 2017, and are scheduled to expire on March 20, 2018.

Additionally, along with the Aug. 22 GTOs, FinCEN issued an Advisory to Financial Institutions and Real Estate Firms and Professionals (the Advisory) urging "real estate brokers, escrow agents, title insurers, and other real estate professionals" to voluntarily report suspicious activity by filing a Suspicious Activity Report (SAR) with FinCEN, although currently not required.

Takeaways and Considerations

It is clear that FinCEN remains concerned that "all cash" purchases of real estate are being conducted by individuals seeking to hide assets and launder money through opaque entity structures. FinCEN Acting Director Jamal El-Hindi has notably stated on various occasions that the information obtained through the Jan. 13, 2016, and July 27, 2016, GTOs have provided valuable information regarding possible illicit activity. This information has also been useful to federal and state law enforcement agencies in aiding the discovery of potential assets held by persons of interest to them.

Based on FinCEN's and law enforcement's continued focus on the real estate industry, financial institutions and real estate professionals should take this opportunity to review their internal controls related to real estate transactions. While real estate professionals are not the subject of any GTOs or, otherwise, formally required to file SARs, it seems, based on the cautionary language in the Advisory, that such professionals are being encouraged to voluntarily adopt certain anti-money laundering measures such as filing SARs.


1 The Jan. 13, 2016, GTOs define a "legal entity" as a corporation, limited liability company, partnership or other similar business entity, whether formed under the laws of a state, the U.S. or a foreign jurisdiction.

2 "All cash" includes currency, cashier's checks, certified checks, traveler's checks or money orders used as any part (no de minimus exception) of the purchase price. Business checks, personal checks and wire transfers did not trigger the requirements under the initial Jan. 13 GTOs, but business checks and personal checks were subsequently included with the extension of such GTOs on July 27, 2016. Now, the Aug. 22, 2017, GTOs also include wire transfers as part of the "all cash" definition.

3 GTOs are permitted to last only 180 days but are routinely extended.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.