Closinglock Introduces Fincen Aml Compliance Tool For Title Companies

Closinglock, a provider of secure digital payments and wire fraud prevention for real estate transactions, announced a new tool to simplify, centralize and automate data collection required under the Financial Crime Enforcement Network (FinCEN) anti-money laundering rule.

The solution is available immediately to all Closinglock customers at no additional cost.

After an extension announced Tuesday, the new rule will be effective in March and requires title and settlement companies to collect information on certain non-financed residential closings, which account for roughly one in 10 transactions nationwide. Rule provisions were previously set to go into effect Dec. 1.

Collecting this data manually is expected to add two to three hours of work per file, experts say. However, Closinglock said its tool allows title professionals to send clients a secure form that collects the necessary information in minutes.

The platform integrates with DocuSign to provide certified e-signatures, tamper-proof protection against post-signature edits and completion certificates. Submitted forms automatically sync with Closinglock-integrated title production software and are stored for up to five years to comply with FinCEN requirements.

A complete audit trail is also provided — including signer IP addresses, identification details, and timestamps as well as automated reminders to clients.

“Title companies are being asked to take on more compliance responsibility — and more risk — than ever before,” said Andy White, founder and CEO of Closinglock. “We know how much work title professionals put into each closing, and we hear their concerns about the impact of new regulations. By simplifying FinCEN data collection, we’re removing some of the burden title professionals would bear every day and replacing it with a process that ensures data is collected accurately, securely, and on time.”

In September, Closinglock launched automated payoff retrieval, allowing title teams to order payoff statements quickly. Verified payoffs are insured for $2.5 million.

Closinglock is also expanding communication tools, including two-way SMS messaging, customizable notifications and a closing progress tracker.