In preparation for compliance with the Residential Real Estate Reporting Rule that will be enforced starting March 1, 2026, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) released a series of helpful resources and compliance guidelines on Dec. 19.
The rule, known officially as the Anti-Money Laundering Regulations for Residential Real Estate Transfers, will require individuals to report non-financed transfers of residential real estate to legal entities and trusts.
Among the guidance release by FinCEN is a breakdown of the rule’s scope, with supplemental links to resources explaining how to prepare and file reports. A quick-reference guide on the rule is also available.
FinCEN has also provided a technical guidance document for batch XML filers and a testing environment for reporting in which filers can test their submission capabilities.
According to FinCEN documentation, many residential real estate transfers are linked to mortgage loans from financial institutions that follow Anti-Money Laundering and Countering the Financing of Terrorism programs. Non-financed transfers, however, can be misused by various illicit actors, including those involved in fraud, organized crime, drug trafficking, human trafficking and corruption. This potential for illicit financial activity necessitated the rule’s transaction reporting requirements, according to FinCEN.
To complete your preparations prior to the rule’s effective date, be sure to explore these resources from October Research about FinCEN’s real estate reporting rule:
Keys to Real Estate Podcast episode: Trust Transfers Trigger FinCEN Scrutiny: What Every Attorney Needs to Know - Ruth Dillingham, Esq.
Tuesdays with Mary blog guest post: What to know about FinCEN reporting requirements for real estate transactions
Webinar: Countdown to Compliance: FinCEN's Residential Rule Explained
Subscriber-exclusive Q&A: Questions on FinCEN’s residential rule answered
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