Reported by SNEJANA FARBEROV

(Excerpt shared below. To read full report, go to: https://www.realtor.com/news/trends/fincen-money-laundering-rule-crackdown-all-case-home-purchases/)

The U.S. Treasury Department’s financial crime-fighting arm has introduced a new rule aimed at cracking down on money laundering in all-cash home purchases—but everyday buyers shouldn’t be alarmed. 

The federal regulation, formally known as the “Anti-Money Laundering Regulations for Residential Real Estate Transfers,” requires mandatory reporting of all-cash residential real estate transactions involving trusts, estates, limited liability companies (LLCs), corporations, and partnerships to the Financial Crimes Enforcement Network (FinCEN).

The language of the rule makes it clear that it does not apply to property purchases in which the buyer is an individual. In other words, a house hunter looking to buy a $500,000 single-family home without a mortgage will not be expected to report the deal to the Department of the Treasury headed by Secretary Scott Bessent.

“The rule is very targeted, focusing on high-risk all-cash entity or trust transactions, not the broader residential market,” stresses Realtor.com® senior economic research analyst Hannah Jones. 

Originally unveiled a little over a year ago, the new FinCEN rule will go into effect on Dec. 1, 2025.