This bulletin is a follow-up to the previous bulletin regarding the FinCEN Geographic Targeting Order (GTO) that was issued on February 15, 2016. Below is a link to the prior bulletin.
Since the bulletin was released, FinCEN conducted a webinar which was referenced in the prior bulletin. A link to a recording of that webinar is included for your convenience.
Recorded webinar for Miami-Dade County, Florida
Stewart encourages you to watch the webinar if you have not already.
As a reminder, the order requiring reporting of certain transactions occurring in Miami-Dade County, Florida goes into effect on March 1, 2016, and continues until August 27, 2016.
Failure to report can subject the company or any of its employees to a fine and/or penalty. Penalties can be assessed any time within six years from the date of the Covered Transaction. Civil actions may be commenced within two years of the date of the penalty or criminal conviction.
Stewart suggests, at this time, that you begin informing your customers and title closers of the reporting requirement and begin raising as a requirement in your Miami-Dade County, Florida title reports/Commitments the following:
As a result of a Geographic Targeting Order issued by the United States Department of Treasury, Financial Crimes Enforcement Network, the following additional reporting requirements will be required at or before closing for the following transactions closing between: March 1, 2016, to August 27, 2016:
- The proposed insured/ buyer: is a Legal Entity, defined under the GTO as a corporation, limited liability company, partnership or other similar business entity, whether formed under the laws of Florida, any other state, the United States, or a foreign jurisdiction;
- The Proposed insured property is Residential real property located in Miami-Dade County, Florida,
- Total Consideration of more than $1 million
- The consideration is paid without a loan or similar form of external financing from a financial institution; and
- Any portion of the purchase price is paid using currency, cashier’s check, certified check, traveler’s check or money order.
In the event a transaction meets the above criteria, the following must be reported to the IRS/FinCEN on a form 8300.
- Identity of the individual primarily responsible for representing the Legal Entity;
a. A description of the identification (driver’s license, passport or other similar identifying document) obtained from the individual primarily responsible for representing the Purchaser with a copy retained in the file;
- Identity of the Purchaser and any Beneficial Owner(s) of the Purchaser’s;
a. A description of the type of identification, driver’s license, passport or other similar identifying document, obtained from the Beneficial Owner with a copy retained in the file;
- Date of closing of the Covered Transaction;
- Total amount transferred in the form of a Monetary Instrument;
- Total purchase price of the Covered Transaction; and
- Address of the real property involved in the Covered Transaction;
a. Also include the term “REGTOMIA” as a unique identifier for this GTO in the Comments section.
Title closers will need to be advised of this new disclosure requirement in the event the transaction fits the GTO and the transaction has not been identified prior to closing. In the event a party will not provide the information on a covered transaction, you may not issue the title insurance policy without written authority from Stewart.
Stewart is working with FinCEN directly as well as through ALTA and the FLTA to provide information to its offices and agents. Attached to this bulletin is a link to the Frequently Asked Questions published by FinCEN as well as the ALTA Fact Sheet.
Stewart will require all offices and agents to file the form 8300 within thirty (30) days on all covered transactions for as long as the order is in place directly with FinCEN. All agents and offices should report evidence of the filing to Stewart via the over limits/high liability system. A copy of the form 8300 completed and signed together with the required beneficial owner identification and copies of the proofs taken should be attached to an over limits form and submitted to: HighLiPolicy@stewart.com. You will not receive an approval of the submission. This submission is for record keeping purposes.
When you report policies to Stewart’s Policy Services, please indicate the county code for Miami Dade County, Florida, which is 086.
In the event you have any questions, please contact the Stewart Title Guaranty Company- Houston Legal Department at (713) 625-8225.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.