The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is postponing the reporting requirements of its Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule (RRE Rule) until March 1, 2026.
The RRE rule mandates that certain professionals involved with real estate closings and settlements to submit reports to FinCEN related to non-financed transfers of residential real estate to legal entities or trusts. To implement this extension, FinCEN issued a temporary order granting exemptive relief from the reporting requirements.
The RRE Rule was announced in August 2024 and slated to go into effect on Dec. 1.
“FinCEN is taking this step to provide industry with more time to comply—consistent with the Administration’s agenda to reduce compliance burden—while still adequately protecting the US financial system from money laundering, terrorist financing, and other serious illicit finance threats,” said the agency in a statement, adding, “In the interim, any Real Estate Geographic Targeting Orders will remain in effect.”
The American Land Title Association (ALTA) welcomed the news, with CEO Chris Morton stating, “FinCEN’s decision to postpone its reporting requirements shows recognition of the valid concerns raised by ALTA members and Congress about implementation. There are serious concerns about the immense financial and compliance burdens of this rule on the small businesses that comprise 90% of the title insurance industry. This delay gives ALTA more time to work with FinCEN to revise this costly rule that places significant burdens on title companies.”
