FinCEN Proposes Reporting Requirements for "High-Risk" Real Estate Transfers

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.

Information required to be reported would include such as about (i) the beneficial ownership information about the buyer and the persons representing the buyer, (ii) the property and any payments and (iii) the seller and the person filing the report.

The proposed reporting requirements would apply to settlement agents, title insurance agents, escrow agents and attorneys (only one filing would be required in respect of any transaction). The relevant report would need to be filed within 30 days after the transferor the party.

The reporting requirements are intended to extend the scope of Real Estate Geographic Targeting Orders (see previous coverage).

Comments on the proposal will be due 60 days after publication in the Federal Register.