DATE: April 24, 2023
TO: Massachusetts Agents and Approved Attorneys
FROM: Massachusetts Underwriting Department
RE: FinCEN Geographic Targeting Order Renewal

FinCEN has issued a new Geographic Targeting Order dated April 21, 2023 (the “New Order”) which applies to covered transactions in which the date of closing is April 25, 2023 through October 21, 2023. Transactions closing prior to April 25th are still subject to the terms of the prior order dated October 26, 2022.

The New Order has the following changes from the prior order:

  • A new identifier, REGTO0423, must be reflected on Field 45 of each Currency Transaction Report filed for covered purchase transactions closing on or after April 25.
  • In addition to the counties covered by the October 26, 2022 GTO, this GTO covers the additional county of Litchfield in Connecticut and various counties in Colorado.
  • The terms of this Order for purchases of properties within the Connecticut county of Litchfield and the Colorado counties are effective beginning May 24, 2023. The terms of this Order are effective for all other areas beginning April 25, 2023.

There are no other changes in the New Order. It still contains the following requirements and Massachusetts geographic areas:

  • The purchase price is in the amount of $300,000 or above.
  • The reporting form is a Currency Transaction Report, which needs to be completed online.
  • The affected properties and geographic areas are residential (1 – 4 family) properties located in Suffolk and Middlesex.
  • The buyer pays, even partially, with a currency, cashier’s check, certified check, traveler’s check, personal check, business check, money order, wire transfer or virtual currency.
  • The buyer must be a “Legal Entity” as defined in the New Order (corporation, LLC, partnership, or Massachusetts business trust).
  • The purchase is made without a bank loan or other similar form of external financing. If the lender is private or non-regulated, you would report the transaction.

Finally, all Commitments for residential property located in Suffolk or Middlesex counties in the Commonwealth of Massachusetts and Fairfield or Litchfield county in Connecticut must include the following requirement:

The Company and its policy issuing agents are required by Federal law to collect additional information about certain transactions in specified geographic areas in accordance with the Bank Secrecy Act. If this transaction is required to be reported under a Geographic Targeting Order issued by FinCEN, the Company or its policy issuing agent must be supplied with a completed ALTA Information Collection Form (“ICF”) prior to closing the transaction contemplated herein.

If you have any questions about the New Order, please contact your Company Underwriting Advisor or the FinCEN Resource Center at FRC@FinCEN.gov.

Additional attachment: Real Estate GTO FAQs