Basics of FinCEN’s Anti-Money Laundering Rule
December 18, 2025
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) anti-money laundering rule requires certain people involved in real estate closings and settlements to report information to the agency about all-cash residential transactions nationwide involving legal entities and trusts.
The rule, which goes into effect March 1, 2026, will have a significant operational impact on title and settlement agents workflows.
ALTA Resources
ALTA has developed resources to help industry professionals comply with the rule.
- Collection Forms: ALTA has developed buyer and seller forms to assist industry professionals in collecting information needed to comply with the rule. Click here to access the forms. You must be logged in and be an ALTA member or a policy forms licensee to access these collection forms.
- FAQs: ALTA has compiled a list of FAQs that address the basics, reportable transactions, who must report; information regarding the reporting person, the transferee, the transferor, payments, and hard money, private and other similar loans; reasonable reliance; and filing procedures. The FAQs are only available to ALTA members.
Rule Basics
What Transfers Must Be Reported
- All non-financed/cash transfers of residential real estate where the transferee is a legal entity or trust
- Residential real estate:
- One-to-four family residences
- Vacant land intended for future one-to-four family development
- Units in buildings designed for one-to-four family occupancy
- Shares in a cooperative housing corporation (co-ops)
- Non-financed
- Any transaction that does not involve an extension of credit that is secured by the subject property and extended by a financial institution that is subject to an Anti-Money Laundering (AML) program and Suspicious Activity Report (SAR) obligations
Who Must Report: Reporting Cascade
- The person listed as the closing or settlement agent on the closing or settlement statement
- The person that prepares the closing or settlement statement
- The person that files with the recordation office the deed or other instrument that transfers ownership of the residential real property
- The person that underwrites an owner’s title insurance policy for the transferee
- The person that disburses the greatest amount of funds in connection with the transfer
- The person that provides an evaluation of the status of the title
- The person that prepares the deed or, if no deed is involved, any other legal instrument that transfers ownership of the residential real property, including, with respect to shares in a cooperative housing corporation, the person who prepares the stock certificate.
When Must the Information be Reported to FinCEN
- The later of the last day of the month following “closing” or 30-calendar days after closing
What Must be Reported
- The reporting person’s identifying information
- The legal entity (transferee entity) or trust (transferee trust) receiving ownership of the property
- The beneficial owners of the transferee entity or transferee trust
- Certain individuals signing documents on behalf of ?the transferee entity or transferee trust during the reportable transfer
- The transferor information
- The residential real property being transferred
- Total consideration and certain information about any payments made
How Do You Report
- Electronically through the BSA E-Filing System using the “Real Estate Report”
Bootcamp
To help professionals prepare for the rule, ALTA is offering a two-day virtual bootcamp on Jan. 22-23.
The bootcamp will provide:
- Insights into how companies are structuring reporting workflows
- A breakdown of the rule’s 111+ data points
- Common pitfalls to avoid
- Smart tools to train your team with confidence
- Guidance for communicating clearly with customers and reducing confusion
- A framework for reviewing new technology and services to help with reporting
Click here to register for the bootcamp.
Contact ALTA at 202-296-3671 or [email protected].