FinCEN published in the Federal Register an advance notice of proposed rulemaking on additional Bank Secrecy Act information collection and reporting requirements applicable to cash-based real estate transactions. Comments are due by February 7, 2022.
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Financial Crimes Enforcement Network Director Jennifer Shasky Calvery warned of money-laundering vulnerabilities in the real estate industry, particularly the risks associated with "all-cash" real estate purchases.
FinCEN extended the comment period for a proposed rulemaking concerning potential Bank Secrecy Act information collection and reporting requirements "on certain persons participating in transactions involving non-financed purchases of real estate."
The FinCEN extended a Geographic Targeting Order to flag potential money-laundering issues concerning the use of legal entities to purchase residential real estate.
FinCEN proposed new reporting regulations "to require certain persons involved in real estate closings and settlements to submit reports and keep records on identified non-financed transfers of residential real property to specified legal entities and trusts on a nationwide basis." The new rule is aimed at targeting transfers deemed to be high-risk for money laundering.