Anti-Money Laundering

Background

Since January 2016, the Financial Crimes Enforcement Network (FinCEN), required title companies to collect and report beneficial ownership information on certain real estate transactions. These Geographic Targeting Orders apply to all title insurers, their subsidiaries and agents of (“Covered Business”).

ALTA's Position

ALTA is concerned about FinCEN’s underestimated expense the rule will cost the industry. According to FinCEN, the rule will cost the industry $453.9 million annually ($476.2 million in the first year. This equates to almost $500 per real estate report based on FinCEN’s estimate that 850,000 reports will be filed annually. ALTA’s letter said these amounts are excessive both in total and on a per-transaction basis.