On Thursday, March 19, 2026, a federal court in Texas ruled that the FinCEN Anti-Money Laundering Rule is invalid. Late Friday, March 20, 2026, the U.S. Department of Treasury (FinCEN) declared: “In light of a federal court decision, reporting persons are not currently required to file real estate reports with FinCEN and are not subject to liability if they fail to do so while the order remains in force.” As a result, we are pausing the collection and reporting of information related to the FinCEN Anti-Money Laundering Rule.
While this requirement is currently paused, it’s important to understand the broader context. The U.S. Department of the Treasury has identified the use of residential real estate for illicit financial activity as a concern that can impact both economic and national security, as well as create an uneven playing field in the housing market.
The FinCEN reporting rule was developed to:
Increase transparency in certain real estate transactions.
Help prevent and deter money laundering.
Support a fair and competitive marketplace.
Although the rule is not currently being enforced, it may be reinstated or modified in the future. Our team is actively monitoring developments and will keep you informed of any changes that may impact your transaction.
As always, we are committed to providing a smooth and informed closing experience.
