On May 28, 2026, the ABA Banking Journal reported that a federal court has vacated FinCEN’s new anti-money laundering reporting requirements for residential real estate transfers. Thus, the reporting requirements are suspended while the agency appeals the decision.
The Residential Real Estate Reporting Rule required certain real estate closing and settlement professionals to report specified non-financed residential property transfers involving legal entities and trusts. Although the rule took effect in March, it was challenged by Texas-based Flowers Title Companies, and a federal court recently ruled that FinCEN exceeded its authority under the Bank Secrecy Act in issuing the requirement.
FinCEN and the Department of Justice have appealed the decision. While the court's order remains in effect, covered parties are not required to submit real estate reports to FinCEN and will not face liability for failing to do so.
Read the ABA Banking Journal’s report here.
FinCEN’s RRE Rule information page can be found here.