Financial Crime & AML: FinCEN Final Rule on Real Estate Transfer Reporting

Summary

The Financial Crimes Enforcement Network (FinCEN) recently issued a final rule on real estate transfer reporting. The rule requires certain financial institutions to report transactions involving the sale or transfer of real estate valued at $300,000 or more. The rule is designed to help combat money laundering and other financial crimes.

Who is Affected by the Rule?

The rule applies to financial institutions that are subject to the Bank Secrecy Act (BSA). This includes banks, credit unions, and trust companies. The rule also applies to certain non-financial institutions, such as real estate brokers and closing agents.

What Transactions are Reported?

The rule requires financial institutions to report the following transactions: * Sales of real estate valued at $300,000 or more * Transfers of real estate valued at $300,000 or more * Mortgages on real estate valued at $300,000 or more

What Information is Reported?

The rule requires financial institutions to report the following information: * The name and address of the buyer * The name and address of the seller * The amount of the transaction * The date of the transaction * The type of property transferred * The location of the property

How are Transactions Reported?

The rule requires financial institutions to report transactions through the FinCEN Secure File Transfer (SFT) system. Transactions must be reported within 15 calendar days of the date of the transaction.

Penalties for Non-Compliance

Financial institutions that fail to comply with the rule may be subject to civil penalties of up to $25,000 per violation. Criminal penalties may also be imposed.

The Need for Real Estate Transfer Reporting

Real estate transactions are often used to launder money. Money launderers use real estate to hide the source of their illegal funds and to move money around the world. Real estate transfer reporting is an important tool in the fight against money laundering.

Conclusion

The FinCEN Final Rule on Real Estate Transfer Reporting is an important step in the fight against money laundering. The rule helps to ensure that real estate transactions are not used to launder money or finance other financial crimes.