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On February 16, 2024, the Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM) titled Anti-Money Laundering Regulations for Residential Real Estate Transfers. The rule imposes reporting and record keeping requirements on certain persons involved in real estate closings and settlements for non-financed residential real estate transactions.
The purpose of the rule is to address money laundering, and illicit financial crimes involving real estate. The rule imposes a cascading reporting requirement, where certain persons involved in real estate transactions are required to file a “Real Estate Report” no later than 30 days after the date of closing. FinCEN expects that the Real Estate Reports would be filed and submitted by settlement agents, title insurance agents, escrow agents, and attorneys. FinCEN has created and issued a fact sheet on the issue that is helpful as well.
NAR will submit a formal comment on the proposed rule, and will continue to remain engaged on the topic of anti-money laundering and illicit financing within the real estate sector.