03/20/2026
U.S. District Court Vacates
FinCEN Residential Real Estate Rule
MARCH 19, 2026: FINCEN RULE VACATED NATIONWIDE
Today, the U.S. District Court for the Eastern District of Texas vacated FinCEN’s Residential Real Estate Rule, finding that the Rule exceeded the agency’s statutory authority under the Bank Secrecy Act. The ruling by the Court vacates the rule nationwide.
In its Memorandum Opinion and Order the Court concluded that the appropriate remedy was to vacate the Rule, stating that “it is unlikely that FinCEN can justify its decision on remand because the Rule exceeds its authority under the Bank Secrecy Act” and that vacating the Rule “would not be unduly disruptive” considering the short period of time it has been in effect. Regarding the latter, the Court refers to the Rule’s effective date of December 1, 2025. As industry professionals are aware, on September 30, 2025, FinCEN extended the Rule’s effective date for reporting to March 1, 2026.