FinCEN’s Residential Real Estate Reporting Regulation
Starting March 1, 2026, settlement agents will be reporting residential real estate transaction information to FinCEN when the Buyer is an entity (corporation, LLC, etc.) or trust to FinCEN and there is no lender involved with an anti-money laundering program.
To comply with the reporting requirements, settlement agents will be asking Sellers and Buyers for information concerning:
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Reporting person information
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Closing date
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Property address and full legal description
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Transferee/Buyer information
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Person(s) associated with the transferee (authorized signers and beneficical owners)
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Transferor/Seller information
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If the Transferor is Trust, the trustee’s information
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Purchase price
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Payment information, including bank account details for sourcing funds
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Detailed payment information for payments made on behalf of the Transferee/Buyer
These categories are required by FinCEN -settlement agents do not have a choice. So, let’s work together to educate our consumer clients who will be required to provide and certify the information above in advance of closing
BRIEF LEGAL HISTORY:
1970
Bank Secrecy Act passed requiring anti-money laundering and countering financing of terrorism programs for financial institutions.
1988
“Persons involved in real estate closings and settlements” were included in 1988’s Anti-Drug Abuse Act but were excepted from rulemaking until the 2020 Anti-Money Laundering Act.
2024
FinCEN created final Residential Real Estate Rule that requires settlement agents to report specific information or be subject to civil and criminal penalties which could include imprisonment