FinCEN Residential Real Estate Reporting Delayed
FinCEN postponed its new rule requiring reports on cash home sales to businesses and trusts until March 1, 2026, giving the industry more time to comply.
WASHINGTON — The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced it will postpone reporting requirements of the Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule (RRE Rule) until March 1, 2026.
The Residential Real Estate Rule was scheduled to go into effect on Dec. 1. Under the new order, those covered by the rule now have until the new deadline to file their reports.
The Treasury said FinCEN is extending the deadline to ease compliance burdens while continuing to safeguard the U.S. financial system from illicit activity.
“While the illicit finance risks associated with non-financed transfer of residential real property to legal entities and trusts remain, this delay will allow industry sufficient time to comply with the Residential Real Estate Rule, serving the ultimate objective of appropriately protecting the U.S. financial system and guarding against money laundering, terrorist financing, and other illicit finance risks,” the Treasury said.
On Aug. 29, 2024, FinCEN issued the Residential Real Estate Rule, which requires certain real estate professionals who handle closings and settlements to report cash or non-financed sales of residential property when the buyer is a business or trust, not an individual.
The rule focuses on these transactions because they don’t go through banks or lenders, which are already required to follow anti–money laundering laws. Without that oversight, all-cash deals can be used by criminals or corrupt individuals to hide or move illegal money, the Treasury said.
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