NEWS: FinCEN publishes guidance for new Residential Real Estate Reporting rule

By PAUL O’DONOGHUE, Senior Correspondent

FINCEN, the AML unit of the U.S Department of the Treasury, has published guidance for its new Residential Real Estate Reporting rule.

The organization said the materials are designed to “help the real estate industry prepare for upcoming reporting requirements, effective March 1, 2026”.

Materials published include:

• Quick reference guides containing general information about reporting requirements
• Instructions on how to complete the report
• Technical guidance for batch XML filers
• Testing environment for reporting, where filers can test their submission capabilities

The new guidance covers a new rule that will require certain professionals to report all-cash property transactions involving legal entities and trusts, in an effort to combat money laundering.

In addition to laying out technical compliance, the new guidance also includes ‘straightforward guides’ to explain key concepts such as:

• Who must file reports
• The main concepts of the Residential Real Estate Rule
• A reference guide for exceptions applying to the likes of trusts 
• Common questions and answers

FinCEN previously said that this reporting requirement is “designed to increase transparency in the U.S. residential real estate sector”.

It added that the Department of the Treasury “has long recognized” the risks of illicit use of residential real estate. 

“[This] threatens U.S. economic and national security,” it said. It also said that this can “disadvantage those that seek to compete fairly in the U.S. real estate market”. 

Companies can submit Real Estate Reports (RERs) directly to FinCEN through its BSA E-Filing System. It is available [HERE]. There is no fee for submissions.

Companies may also use third-party service providers to submit RERs to FinCEN. Those providers might charge fees for their services.