FinCEN Reporting Requirement Resources

March 20 update

As of March 20, 2026, a federal court in the Eastern District of Texas has vacated FinCEN’s Residential Real Estate Rule, finding that FinCEN exceeded its authority under the Bank Secrecy Act. As a result, the rule is not currently in effect, but there is significant uncertainty because an appeal is likely and the ruling could be stayed, which would reinstate the rule.

For real estate licensees, this means no immediate change in practice is required, but the situation is evolving. Industry guidance suggests taking a cautious approach — continuing to educate buyers and sellers as if reporting requirements could return. The American Land Title Association had indicated the cautious approach is for settlement agents to continue collecting information as if they will need to report. Further developments will be posted here and communicated by email.

FinCEN overview

Starting March 1, 2026, a landmark rule issued by the Financial Crimes Enforcement Network (FinCEN) expands anti-money-laundering oversight into the residential real estate sector. Below you'll find all the details and additional resources that REALTORS® need to know about the March 1 effective date.

Top five things REALTORS® should know about FinCEN

1. The rule took effect March 1, 2026

Beginning March 1, 2026, a rule issued by the Financial Crimes Enforcement Network (FinCEN) expands anti-money-laundering oversight into residential real estate transactions.

The rule is intended to prevent criminals from using real estate transactions to launder money by hiding behind entities or trusts.

2. The rule applies to certain non-financed residential property transfers

A transaction may trigger the rule if it involves:

• Residential real estate, including:

  • Single-family homes

  • Condos or townhomes

  • 1–4 unit properties

  • Co-ops

  • Mixed-use buildings with residential components

  • Vacant land intended for residential development
    

• And when the transaction is non-financed, such as:

• All-cash purchases

• Seller-financed deals, such as land contracts

• Private financing from friends, family or investment groups

3. The buyer must be an entity or trust

The reporting requirement is triggered when the buyer is not an individual, but instead is:

• An LLC

• A corporation

• A trust

• Another legal entity

There is no price threshold and no geographic limitation — the rule applies nationwide and at any price point.

4. REALTORS® are not responsible for filing the report

The rule refers to “real estate professionals,” but that does not mean real estate agents. The reporting person is usually the party performing settlement functions, such as:

• Title companies

• Escrow agents

• Closing attorneys

• Settlement officers

These professionals collect the information and file the FinCEN report. Agents should not collect or transmit sensitive information like Social Security numbers.

5. The REALTOR®’s role is to educate clients early

Although agents do not file the report, they should:

• Inform buyers and sellers early if their transaction might be reportable

• Encourage parties to gather required documents

• Direct parties to provide sensitive information directly to the closing agent

More FinCEN resources

WRA-FD form

The WRA created the WRA-FD FinCEN Report Disclosure for Wisconsin Properties form, which agents can provide early in the transaction, so clients understand the reporting requirements. This form is available in the WRA Forms Library and Transactions (zipForm Edition).

FinCEN magazine article

February 2026 Wisconsin Real Estate Magazine article: "FinCEN Reporting Requirements: Part 2"

Video

September 2025 Legal Update video: "FinCEN Reporting Requirements"

Simple takeaway for REALTORS®

FinCEN reporting may apply to cash purchases of residential property by LLCs or trusts, the title or closing company files the report, and the agent’s role is mainly to inform clients early and direct them to the closing agent for the required information.