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FinCEN’s Anti-Money Laundering Regulations

REV 8.25.25

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The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented Anti-Money Laundering (AML) regulations under the Bank Secrecy Act (BSA) for residential real estate transfers. They require, on a nationwide basis, certain person involved in real estate closings and settlements to report information to FinCEN about specified transfers of residential real estate. This will go into effect on all transactions that will closings ON or AFTER MARCH 1, 2026.

What You Need to Know

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Residential real estate transactions are reportable when they meet the following criteria:

The property is residential real property, vacant land to be used for residential purposes, mixed use properties and all multi family properties
The transfer is non-financed, all cash, or without institutional lender financing
At least one buyer/transferee is a legal entity, LLC, corporation, partnership, all trusts, trustee or other non-natural person

What You Need to Know

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Reportable real estate property includes:

1-4 family dwellings, townhouses, condominiums, and cooperatives

Improved acreage with 1-4 family dwellings

Improved commercial tracts, which contain 1-4 family dwellings, such as apartment buildings, Cooperatives with residential units, Time Share Condos, High-Rise buildings with residential units, shopping centers with residential units.

Unimproved lands upon which the transferee intends to build any of the above listed residential type structures.

ALL Transfers of Ownership of property types described above, which are located in the 50 United States, D.C., and Puerto Rico, including Indian Lands.

Properties Covered/Included

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What is Reported?

Property Information
Reporting Person Information

Buyer (Transferee) Details
Entity & Entity Beneficial Owner details
Trust & Trust Beneficial Owner details
All payment bank and draft details
Copies of Identification for all names provided

Seller (Transferor) Details
Individual(s)
Entity details
Trust & Trustees details
Copies of Identification

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Buyer/Transferee Form

AML Information Collection & Certification Forms

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Buyer/Transferee Reporting Exemptions - Entities

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Buyer/Transferee Reporting Exemptions - Trusts

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Transferee Entities

This form collects information necessary to comply with the rule including information about the transferee trust including the legal trust name, current address, IRS tax payer identification number if available (if not available other identifying information is required.

In lieu of a passport number, Non-U.S. Persons may also provide a Social Security Number, an alien identification card number, or number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard.

It also requires reporting of EACH beneficial owner of the transferee entity. Per the federal regulations, a beneficial owners of a transferee entity is someone who

1 – exercises substantial control of the transferee entity, or

2 – owns or controls at least 25% of the transferee entity’s ownership interests. This includes: their full legal name, DOB, complete current residential street address, citizenship and IRS tax payer identification number if available .

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Transferee Trusts

This form collects information necessary to comply with the rule including information about the transferee entity including their legal name, current address, IRS tax payer identification number if available (if not available other identifying information is required.

a In lieu of a passport number, Non-U.S. Persons may also provide a Social Security Number, an alien identification card number, or number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard.

a trustee of the transferee trust

b. An individual other than a trustee with the authority to dispose of transferee trust assets

c. A beneficiary who is the sole permissible recipient of income and principal from the transferee trust or who has the right to demand a distribution of, or withdraw, substantially all of the assets from the transferee trust

d. A grantor or settlor who has the right to revoke the transferee trust or otherwise withdraw the assets of the transferee trust

e. A beneficial owner of a legal entity or trust that is a trustee or the transferee trust

f. A beneficial owner of a legal entity or trust with authority to dispose of transferee trust assets in a manner other than as a trustee of a transferee trust

g. A beneficial owner of a legal entity or trust that is the sole permissible recipient of income and principal from the transferee trust or who has the right to demand a distribution of, or withdraw, substantially all of the assets from the transferee trust

h. A beneficial owner of legal entity or trust that is a grantor or settlor with the right to revoke the transferee trust or otherwise withdraw the assets of the transferee trust

i. An individual who expects to sign documents on behalf of the transferee trust

*If beneficial owner is a minor child and you are a parent/guardian please add “parent/guardian” in Full Legal Name

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Funds Used for Acquisition

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Certification – By Buyer/Transferee

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Seller/Transferor Form

AML Information Collection & Certification Forms

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Transferor – Individual(s) / Entity Information

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Transferor – Trust Information

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Transferor – Certification

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Who Must Report

The reporting cascade is designed to capture both sale and non-sale transfers. If no person is involved in the transfer as described in the first tier of potential reporting persons, the reporting obligation would fall to the person involved in the transfer as described in the second tier of potential reporting persons, if any, and so on.

Settlement or Closing Agent
Preparer of the settlement statement
Person who records the deed
Title insurance policy issuer (may not be the underwriter)
Disburser of greatest amount of funds
Title examiner
Deed preparer

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How and When to Report

A reporting deadline of the final day of the following month after which a closing took place, or 30 days after the date of the closing, whichever is later.

FinCEN notes that there is no exception from reporting under the final rule should a transferee fail to cooperate in providing information about a reportable transfer. The final rule does not authorize the filing of incomplete reports, and a reporting person who fails to report the required information about a reportable transfer could be subject to penalties.

BSA efiling system – Real Estate Professionals will create a unique account for reporting online

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FinCEN uses this data to

Detect and prevent money laundering

Support law enforcement

Protect national security

Why This Matters

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THANK YOU