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Course Details

This CLE webinar will guide practitioners through the Department of the Treasury's Financial Crimes Enforcement Network's (FinCEN) long-awaited final rule to increase transparency in non-financed residential real estate transactions that will significantly impact covered real estate entities with extensive new reporting obligations. The panel will address who is covered by the new rule, the reporting requirements, and best practices to prepare for compliance.

Faculty

Description

In its ongoing efforts to combat and deter money laundering, FinCEN recently issued its long-awaited final rule, effective Dec. 1, 2025, that extends anti-money laundering reporting requirements to the residential real estate sector nationwide and increases the transparency of certain non-financed real estate transactions.

The final rule covers businesses, including attorneys, performing specified closing or settlement functions for the non-financed sale or transfer of residential real property to a legal entity or trust. The final rule requires a reporting person, as identified in a reporting cascade, to collect and report certain information related to the transaction to FinCEN in a Real Estate Report. The Real Estate Report is more extensive than the Beneficial Ownership Report filed under the Corporate Transparency Act (CTA), although it will contain some of the same information.

Reportable information includes beneficial ownership information for the legal entity (transferee entity) or trust (transferee trust) receiving the property, information about individuals representing the transferee entity or transferee trust, information about the residential real property being sold or transferred, information about the transferor/seller, and information about any payments made.

Real estate counsel and clients should understand the extensive reporting requirements, including required reporting persons, reportable transfers of property, and reportable transferees, in order to perform the due diligence required and put processes in place to prepare for reporting obligations.

Listen as our expert panel guides practitioners through the FinCEN final rule and discusses the impact the reporting requirements will have on covered real estate businesses. The panel will address the interaction the new rule may have with the CTA and offer best practices for taking steps now to prepare for compliance.

Outline

  1. Introduction to the final rule
    1. Purpose
    2. Bank Secrecy Act
    3. Residential Real Estate GTO Program
  2. The final rule
    1. Covered transfers of residential real property
    2. Reporting requirements
    3. Reporting persons
    4. Report filing and recordkeeping
    5. Exemptions
    6. Penalties for noncompliance
  3. Interaction with the Corporate Transparency Act
  4. Compliance timeline
  5. Next steps: preparing for compliance obligations
  6. Practitioner takeaways

Benefits

The panel will review these and other important considerations:

  • Who are required reporting entities? Reporting persons?
  • What information will be required to be reported?
  • Who are the reportable transferees and to what residential real estate transactions does the final rule apply?
  • What interaction does the final rule have with the CTA?
  • What steps should counsel and their clients take now to prepare for compliance?