Reported by Sean Buckley and April Smith

(Excerpt shared below. To read full report and press release from FinCEN, go to: https://www.jdsupra.com/legalnews/fincen-postpones-residential-real-5219824/ and https://www.fincen.gov/news/news-releases/fincen-announces-postponement-residential-real-estate-reporting-until-march-1)

FinCEN announced today that the reporting requirements for the “Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule” (RRE Rule) have been postponed until March 1, 2026. The previous deadline was Dec. 1, 2025, for a new anti-money laundering rule that requires reporting for specific all-cash residential real estate transactions involving legal entities and trusts to the U.S. Department of Treasury’s Financial Crimes Enforcement Network.

In a press release, FinCEN officials acknowledged that the agency is postponing the deadline to provide the real estate industry with more time to comply, to reduce business burden, and to ensure effective regulation. FinCEN has issued a temporary order granting exemptive relief from the reporting requirements.

In August, FinCEN introduced the Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule, which does not apply to transfers made directly to individuals. It is triggered only when the transferee is a legal entity (such as a corporation, LLC, partnership, or estate) or a trust. All-cash and non-bank financed transactions are the primary focus of the new rule as they present higher risks for money laundering.