"The U.S. Treasury Department, under Secretary Scott Bessent, has introduced a new rule through FinCEN to combat money laundering in residential real estate, focusing on high-risk all-cash transactions involving legal entities like trusts and LLCs. The regulation, effective from December 1, 2025, aims to increase transparency and reduce illicit activities but will not impact typical home sales or most individual all-cash purchases."
"The new FinCEN rule targets high-risk all-cash entity or trust transactions, requiring reporting to FinCEN, but does not apply to individual buyers of residential properties. Settlement agents, title insurance companies, and attorneys are responsible for reporting high-risk transactions, enhancing compliance costs and transparency in real estate deals. The rule mandates reporting for nonfinanced residential property transfers to legal entities or trusts, covering both domestic and foreign entities, with exemptions for specific types of transfers."
FinCEN will require reporting of high-risk, all-cash residential property transactions when the buyer is a legal entity or trust, with the rule taking effect December 1, 2025. The requirement covers both domestic and foreign entities and applies to nonfinanced transfers to such entities, while excluding many common sales and most individual all-cash purchases. Settlement agents, title insurance companies, and attorneys will be responsible for submitting reports, increasing compliance obligations and costs for those parties. The regulation seeks to increase transparency in residential real estate to reduce money laundering and illicit finance tied to anonymous legal entities.
Read at SFGATE
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