On March 19, 2026, a federal district court in Texas vacated the Financial Crimes Enforcement Network's (FinCEN) Residential Real Estate Anti‑Money Laundering (AML) Rule, holding that the agency exceeded its statutory authority under the Bank Secrecy Act (BSA) and violated the Administrative Procedure Act (APA). As a result, the rule has been set aside. FinCEN posted a statement noting, “In light of a federal court decision, reporting persons are not currently required to file real estate reports with FinCEN and are not subject to liability if they fail to do so while the order remains in force.”
Neither the Department of Justice (DOJ) nor FinCEN has yet indicated whether there is a plan to appeal the ruling. DOJ may also seek a stay of the decision if they choose to appeal, which could reinstate compliance obligations until an appellate court rules.
FinCEN’s Residential Real Estate AML Rule requires reporting of non‑financed residential real estate transfers involving legal entities or trusts, with the goal of addressing money laundering risks associated with all‑cash purchases. The rule took effect on December 1, 2025, with reporting obligations beginning March 1, 2026.
NAR supports risk‑based, pragmatic approaches to combating money laundering and illicit finance in real estate. Since the final rule was issued, NAR hosted an educational webinar and shared FinCEN guidance with members.
NAR will continue monitoring developments closely and will update members as the legal process unfolds.
