NOVEMBER
2023
DEAR AGENTS AND VALUED CUSTOMERS —
In an ideal world, closing on your home would be as simple as signing on the dotted line, but in reality there is a lot to navigate in order to ensure a smooth settlement. Do you have a Legal Business Entity purchasing a residential property for $300,000 or more? This month’s newsletter covers the new reporting requirements. Sincerely, Laura Bowers, Managing Director
Certain buyers of residential property are subject to new reporting requirements taking effect on November 21, 2023 Financial Crimes Enforcement Network (FinCEN) Geographic Targeting Order– Expanded to Sarasota, Manatee, Charlotte, Lee, Collier, Pinellas, Hillsborough, and Pasco Counties
What is FinCEN? The mission of the Financial Crimes Enforcement Network (FinCEN) is to safeguard the financial system from illicit use, combat money laundering and its related crimes including terrorism, and promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.
Who is subject to this new reporting? Any purchaser of residential property that is a legal business entity (LLC, corporation, partnership or similar) is subject to reporting if the property is located in one of the counties described above. (Trustees or trusts are not considered legal business entities).
Exceptions from reporting include a business whose common stock or analogous equity interest is listed on a securities exchange regulated by the SEC; a selfregulatory organization registered with the SEC, or an entity solely owned by such a business.
Which transactions are subject to reporting? 1. Any residential purchase of $300,000.00 or more. 2. The purchase is made without a bank loan or similar form of external financing. 3. The purchaser is a legal entity (LLC, corporation, partnership, and similar entities). Continued on page 2
MSC Title, Inc | 1605 Main Street, Suite 500 | Sarasota, FL 34236 | 941.552.5211
Continued from page 1
What information is required to be reported?
Who is responsible for reporting this information?
The purchaser must complete an Information Collection Form (ICF) and provide a copy of a government-issued photo ID for each person listed on the (ICF) as the person authorized to conduct business on behalf of the buyer and each person who owns 25% or more of the equity interest of the buyer. The closing agent will supply the ICF form.
The closing agent will be responsible for having this form completed no later than closing and must report to the US Treasury.
What if my buyer who falls under this category refuses to complete the ICF form? The transaction cannot close.
MSC Title, Inc | 1605 Main Street, Suite 500 | Sarasota, FL 34236 | 941.552.5211