For a number of years, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has employed Geographic Targeting Orders (GTOs) to pinpoint areas where all-cash purchases of real estate could conceivably be at risk for money laundering or other suspicious financial conduct. Now, with the new Residential Real Estate Reporting Rule, FinCEN is converting those temporary GTOs into a national and permanent reporting regime.

In Part 2 of our 10-Part FinCEN Compliance Series, we explore how the new rule’s geographic scope applies, and what it means for real estate professionals, especially those operating in high-value markets like Santa Clara and San Francisco Counties.

From GTOs to Nationwide Coverage

For almost a decade, FinCEN has collected data on non-financed real estate transactions in certain metro areas using Geographic Targeting Orders. The GTOs mandated that title insurance companies report all-cash residential purchases, providing glimpses into how opaque financial dealings may mask money laundering through luxe property buys.

The new rule, which takes effect on March 1, 2026, builds on and supersedes those GTOs. Contrary to focusing the rule’s reporting obligation on certain regions or for short periods, the rule creates a permanent, uniform system of reporting across specific geographical units and nationwide.

What Areas Are Included?

Although the new rule sets up a national framework, FinCEN will keep zooming in on high-risk metro areas, particularly those with previous instances of massive all-cash purchases of residential real estate through shell companies or foreign outfits.

Two of the most crucial areas in California are already covered under FinCEN’s current GTOs and likely will be priority areas under the new rule as well:

• Santa Clara County (including San Jose and Silicon Valley communities)

• San Francisco County (and the surrounding Bay Area markets)

Other key metro areas expected to come under greater oversight include:

• Los Angeles County

• San Diego County

• Miami-Dade County (FL)

• New York City boroughs

• Cook County (IL)

• Harris County (TX)

FinCEN could modify these areas as additional data is collected or if patterns of suspicious activity change. For professionals doing business in San Jose, this means that taking a proactive approach to compliance planning is not an option, it’s a necessity.

What It Means for Real Estate Professionals

If you’re a title company, escrow agent, attorney, or settlement agent operating in one of these areas, you’ll need to collect and verify certain information, and report specific transactions, when a residential property is purchased in cash, in full or in part, after closing.

This will likely include:

• The name of the purchaser and beneficiary owners of any corporate entity that purchases.
• The address of the property and what it was purchased for
• Form of payment (e.g., wire, cashier’s check, cryptocurrency, and so on.)
• The date of closure and the party that filed the report

Professionals who don’t heed these directives could face a wide array of civil or criminal penalties as FinCEN takes willful noncompliance seriously under the Bank Secrecy Act (BSA).

Preparing for Compliance in Santa Clara and San Francisco

Real estate lawyers in San Jose, California, need to begin preparing now. Here are the proactive steps that Strategy Law recommends:

1. Re-audit your transaction type processes – Clarify the different types of all-cash transactions and identify which ones qualify as “covered transactions” under FinCEN rules.
2. Review your intake process – Ensure the system you use captures B.O info & payment details correctly.
3. Coordinate with title and escrow professionals- Ensure accountability for FinCEN reporting is defined.
4. Educate your staff – Train your office staff on the new reporting(time lines), necessary data points, and warning signs.
5. Talk to the lawyers – Strategy Law’s team will work with your unique operational model to develop a tailored strategy for compliance.

Looking Ahead: What’s Next in the Series

PART THREE of Strategy Law’s FinCEN Real Estate Compliance Series lets us delve into:

➡️ “Who Must Report? Understanding the Role of Title Companies, Escrow Agents and Lawyers Under FinCEN’s Rule.

We’ll detail which professionals are being asked to report, how responsibility is determined and what you can do to protect your firm from potential liability.

How Strategy Law Can Help

At Strategy Law, we know that compliance is not just a legal requirement but an essential element of risk management and client relationships. We counsel title insurers, escrow providers and real estate professionals throughout California on preparing for FinCEN and BSA compliance.

We can help you:

• Understand FinCEN’s reporting requirements for your segment
• Establish internal reporting guidelines and systems of record keeping
• Check contracts to assign responsibilities for compliance
• Be prepared for the next FinCEN updates and FAQs

Contact Strategy Law Today

If you operate in San Jose or anywhere else in California, now’s the time to prepare for the March 1, 2026 effective date. 

Contact Strategy Law today to learn more about compliance strategies that work for your business. Together, we’ll steer you through the changing FinCEN environment with confidence.

This blog is written as of November 2025.  Recommendations and legal requirements are changing rapidly, so please continue to review our legal updates or review postings on relevant government websites.

All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consultation with counsel. Strategy Law, LLP does not provide any legal advice concerning any matter discussed in a blog except upon formal engagement including, without limitation, execution of Strategy Law, LLP’s formal legal services agreement, and with respect to specific factual situations.  No blog constitutes a guaranty, warranty, or prediction regarding the result of any legal matter discussed in the blog or any representation