The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced that its new Residential Real Estate Reporting Rule will now take effect on March 1, 2026, rather than December 1, 2025. This rule is part of FinCEN’s ongoing effort to curb money laundering through real estate purchases made with cash or through shell entities.
Once effective, the rule will require certain non-institutional financed residential property transfers—such as all-cash purchases made by entities such as LLCs, Corporations, or Trusts—to be reported to FinCEN. The report must include information about the property, the buyer and seller, and the beneficial owners behind any entity or trust involved in the purchase. The responsibility to file these reports will generally fall on the settlement agent, closing attorney or title company (in that order!) handling the transaction.
FinCEN has extended the implementation date to give the real estate industry more time to prepare systems, forms, and compliance procedures. In the meantime, existing Geographic Targeting Orders (GTOs) remain in effect. These orders already require title insurance companies in certain New York counties to collect and report similar ownership information over $300,000.00, all-cash transactions involving entities.
Although the new rule will not be enforced until March 2026, it is expected to expand GTO-style reporting nationwide, making these transparency requirements permanent. We recommend that clients and industry partners begin preparing now by confirming entity ownership structures, maintaining clear records of beneficial owners, and ensuring that closing professionals are aware of upcoming compliance responsibilities.
Our office will continue to monitor developments and issue updates as FinCEN releases additional guidance ahead of the March 2026 effective date. In the meantime, please contact us with any questions about how these requirements may affect upcoming transactions or entity-held real estate purchases.
Penalties for violating the March 1, 2026, Residential Real Estate Rule include civil penalties of up to $5,000 per violation and potential criminal penalties of fines and/or imprisonment of up to five years.