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FinCEN Requirements for Real Estate Transactions
Overview for Realtors, Sellers, and Buyers
The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, sets critical rules to prevent money laundering and fraud in real estate and business transactions. This page provides a practical summary of information for general guidance. Please note that this information is intended for educational purposes only and does not constitute legal advice.
What Realtors, Sellers, and Buyers Should Know
For Realtors
- Identify beneficial owners in covered transactions to ensure compliance with Geographic Targeting Orders (GTOs).
- Monitor federal reporting thresholds for all-cash residential deals involving legal entities.
- Coordinate with title agents to collect required identification and transaction documentation.
For Sellers
- Determine if your business entity qualifies as a 'Reporting Company' under the Corporate Transparency Act.
- Prepare Beneficial Ownership Information (BOI) reports to avoid federal operational penalties.
- Facilitate legal transparency in property transfers by maintaining accurate corporate disclosure records.
For Buyers
- Provide verified identification for all beneficial owners when purchasing through an LLC or trust.
- Support AML (Anti-Money Laundering) efforts by documenting sources of funds for all-cash settlement.
- Engage with title agencies early to confirm identity requirements for high-value residential acquisitions.
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