FinCEN Reporting Requirement – Effective March 1, 2026
Beginning March 1, 2026, settlement agents must report certain residential real estate transactions to FinCEN when the buyer is an entity or trust and the purchase is made without a lender that has an anti‑money‑laundering (AML) program in place.
What is FinCEN and do I need it?
The Financial Crimes Enforcement Network (FinCEN) significantly influences real estate transactions through its Residential Real Estate Reporting Rule (effective March 1, 2026), which targets potential money laundering by increasing transparency in the U.S. residential property market. This rule requires certain professionals involved in closings and settlements—such as title companies, escrow agents, settlement agents, or attorneys (determined by a "reporting cascade")—to file a Real Estate Report with FinCEN for specific non-financed transfers (often all-cash purchases or those using non-regulated lenders) of residential real property to legal entities (e.g., LLCs, corporations, partnerships) or trusts. These reports disclose key details, including the identities of the transferee entity/trust, its beneficial owners (individuals exercising substantial control or owning 25%+ of the entity, or specific roles like trustees/beneficiaries in trusts), the transferor (seller), property details, transaction amounts, payment methods, and more.
FinCEN Resource Videos
FinCEN Intro into the new ruling (3/26)
This video helps explain the new FinCEN reporting rule effective March 1, 2026. It requires reporting beneficial owners for residential real estate transactions where the buyer is an entity (LLC, corporation, partnership, or trust) and applies to cash and non-AML financed deals (including private financing and hard‑money loans); AML lenders are already required to report.
why does this need to be completed (3/26)
This video reviews FinCEN’s expanded requirement to report all residential real‑estate transactions (regardless of price or location) due to money‑laundering concerns, noted exemptions (commercial sales, transfers due to death, divorce), and warned of civil penalties and potential criminal consequences for failing to file.
FinCEN – who does this apply to (3/26)
This video discusses FinCEN reporting requirements: who must report beneficial ownership (any individual/entity with 25%+ ownership of an entity or trust), examples for LLCs, what must be reported (beneficial owners, source-of-funds banks, account holder names and account numbers), need to update disclosures if funding sources change before closing, and that filers must certify the accuracy of the information.
How does this impact the Real Estate Agent
This video explains the role of the real estate professionals in the upcoming reporting requirements — title agents will file reports, but agents must educate clients, collect/confirm required information via customizable links and certification, and ensure reporting deadlines are met (report by the later of the last day of the month after closing or 30 days after closing).
A life estate deed should be deeded to an individual plus the remainderman so they should be fine…Depending on financing
No.
They will have to sign off that the information is still true as well as verify the banking information is still accurate, but no they should not have to complete a new filing every transaction.
We are working on a template option to save the information and then we can streamline the confirmation for the buyer
That is correct
We will have flyers with information on the new reporting coming out soon. Also, there will be an Addendum to the contract that will be released soon.
Yes, crypto would be considered "cash" in this scenario.
The type of financing “loan” doesn’t matter. It matters who the financial institution is.
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