FinCEN Delays Residential Real Estate Anti-Money Laundering Reporting Requirements

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced an extension for the settlement services industry to comply with the Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule (RRE Rule). FinCEN issued an order on September 30, announcing that reporting requirements for the rule will now not be enforced until March 1, 2026. This decision postpones the original December 1 effective date.

The RRE Rule, also known as the “Final Rule,” establishes reporting requirements for non-financed transfers of residential real property to legal entities and trusts. (See prior WBK coverage of the RRE Rule.)  FinCEN stated that the extension is intended to reduce the compliance burden and give affected individuals and businesses more time to adequately prepare for the new regulations.