03/01/2026
New Rules go into effect for Anti- laundering Rule for cash Buyers.
real estate settlement process.
“Although there are many legitimate reasons to use legal entities and trusts to own residential real property, illicit actors intent on laundering funds through residential real property often use legal entities and trusts to disguise their identities and make the proceeds of crime more difficult to identify,” FinCEN sayspdf. “Illicit actors often favor non-financed transfers (including ‘all-cash’ sales) of residential real estate to avoid scrutiny from financial institutions that have anti-money laundering and countering the financing of terrorism program and Suspicious Activity Report filing requirements under the Bank Secrecy Act.”
It’s difficult to approximate how many transactions this rule will impact. The National Association of REALTORS® has estimates for residential all-cash buyers and residential purchases by entities (including trusts), but not both.
Last year, roughly 28% of buyers did not finance their home purchase, according to an average of the NAR’s monthly REALTORS® Confidence Indexes. In addition, nearly 22% of residential purchases were bought by an entity (including trusts), the association found.
In its notice of proposed rulemaking, FinCEN said about 800,000–850,000 transactions annually will need a report.
The rule got off to a bit of a bumpy start. It was originally slated to take effect back in December 2025, but FinCEN postponed it in September to “provide the industry with more time to comply.” Just last week, however, it withstood a challenge in court filed by a title insurance company. The judge found in favor of the U.S. government that the rule was within the authority of FinCEN and did not violate the Fourth Amendment.
