FinCEN Delays AML Real Estate Reporting Rule
September 30, 2025
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced Sept. 30 it will postpone reporting requirements of the Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule until March 1, 2026.
“FinCEN’s decision to postpone its reporting requirements shows recognition of the valid concerns raised by ALTA members and Congress about implementation,” said ALTA CEO Chris Morton. “There are serious concerns about the immense financial and compliance burdens of this rule on the small businesses that comprise 90% of the title insurance industry. This delay gives ALTA more time to work with FinCEN to revise this costly rule that places significant burdens on title companies.”
ALTA has warned FinCEN the rule will have a significant financial and process impact on title and settlement companies. On Sept. 2, ALTA filed an amicus brief supporting Fidelity National Financial’s motion for summary judgment in its challenge to the rule. In the brief, ALTA argues the rule will impose significant compliance costs on small title companies, while offering questionable law enforcement benefits.
ALTA submitted a letter to Congress ahead of FinCEN Director Andrea Gacki’s testimony to highlight industry concerns with the rule. During the hearing, several lawmakers—including Reps. French Hill, Roger Williams, and Young Kim—echoed ALTA’s concerns and push for a delay of the rule. FinCEN heard ALTA’s well-founded concerns regarding implementation of this rule, especially for small businesses and, as a result, delayed the effective date.
This postponement offers much-needed breathing room for continued dialogue as requested by members of Congress in a letter sent Sept. 30 to Director Gacki.
In announcing the delay, FinCEN released a reporting form. The failure to release this form was another reason ALTA requested FinCEN delay implementation of the rule. ALTA informed FinCEN that without the final form, title companies would be unable to train staff appropriately or integrate necessary documents into their systems prior to the implementation date. Given that many real estate transactions have 60-day closing periods, the Dec. 1 implementation date meant the industry would need to start screening transactions and collecting data tomorrow, Oct. 1, to properly comply.
To implement the extension, FinCEN issued a temporary order granting exemptive relief from the reporting requirements. In the interim, any Real Estate Geographic Targeting Orders will remain in effect, according to FinCEN.
ALTA will continue to work with FinCEN to find ways to reduce the burden of this rule while protecting the real estate market from money laundering. To help with this effort, make sure you are a member of the Title Action Network.
Contact ALTA at 202-296-3671 or communications@alta.org.