On Feb 7, 2024, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published, and solicited public comment on, a proposed rule that is intended to “combat and deter money laundering by increasing transparency in the U.S. residential real estate sector” (the “proposed rule”). The proposed rule builds on the U.S. government’s longstanding focus on the money laundering risks posed by the residential real estate market.

Prior Regulatory Activity

The Bank Secrecy Act (BSA) requires the Treasury Department to promulgate anti-money laundering (AML) regulations on “financial institutions.” The BSA lists a number of different types of “financial institutions”, including “persons involved in real estate closings and settlements.”