Reprinted courtesy of ARELLO's Boundaries Magazine, June 2025. Originally published under the title "Wire You Like This."
New federal anti-money laundering rules target all-cash real estate deals
The US Treasury's Financial Crimes Enforcement Network (FinCEN) finalized a rule that will require certain real estate professionals to report all-cash real estate transactions to the government for transparency.
Starting December 1, 2025, when a buyer purchases residential property without financing and uses a legal entity or trust, the closing or settlement agent (or other designated “reporting person") will have to file reports with FinCEN disclosing the parties, beneficial owners, and purchase details.
This nationwide rule essentially makes permanent the kind of disclosures that were previously done in limited “Geographic Targeting Orders."
It aims to shed light on illicit money - often via shell companies - being parked in real estate.
Real estate firms are bracing for new compliance burdens, and some industry groups have reservations. Some lawmakers are pushing back. For example, in February, resolutions were introduced in Congress (SJ Res. 15 and
HJ Res. 55) to nullify FinCEN's real estate reporting rule under the Congressional Review Act.
These efforts, led by critics who argue the rule is overbroad, face an uphill battle, but they underscore the controversy around bringing real estate under
Bank Secrecy Act requirements.
For now, regulators and large brokerages are preparing training so that by next December, closing agents nationwide will collect beneficial ownership information on entity buyers.
Editor's note: The Association of Real Estate License Law Officials (ARELLO) is an international organization of jurisdictions responsible for the administration and enforcement of real estate license laws. The Oregon Real Estate Agency is a member of ARELLO.