(Provided by the Land Title Association of Colorado, May 2023)

The Financial Crimes Enforcement Network has been issuing orders called “Geographic Targeting Orders” since 2016. Under these orders, the title companies that close or underwrite residential transactions that meet certain criteria are required to make additional disclosures about the transaction, including information about the beneficial owners of any buying legal entity. On April 21, 2023, FinCEN updated its GTO to add transactions located in certain Colorado counties for the first time. In order for the transaction to “qualify” for this mandatory reporting, it must meet the following criteria:

  • Residential
  • Purchase does not include a loan (as further discussed in the GTO)
  • Purchase price of $300,000 or higher
  • Buyer is a Legal Entity (as defined in the GTO)
  • At least part of the purchase price is paid using currency, cashier’s check, certified check, traveler’s check, personal check, business check, money order, a fund transfer (including wire transfers), or virtual currency.
  • The property is located in one of these counties: Adams, Arapahoe, Clear Creek, City and County of Denver, Douglas, Eagle, El Paso, Elbert, Fremont, Jefferson, Mesa, Pitkin, Pueblo, Summit.

Beginning May 24, 2023, if your transaction qualifies under the new GTO, the title company closing your transaction will request that buyers provide additional information to facilitate their mandatory report to FinCEN. Specifically, buyers purchasing properties using legal entities should be prepared to provide specific information about the identities (including SSN and identification) of the individuals holding a 25% or greater beneficial interest in the buying entity.

The title industry will rely heavily upon self-disclosure from buyers, as the information that title companies are required to report is not information that the title company would otherwise have access to. The title companies will be held criminally or civilly liable if they do not report the transaction as required under the GTO. This GTO creates new requirements that parties will not be accustomed to in this market. If you have questions about whether your transaction qualifies for this mandatory disclosure, please reach out to your title company, or click below for additional information.

For frequently asked questions see this pdf document