ALTA Advocacy Spurs FinCEN to Delay AML Real Estate Reporting Rule

Author: ALTA CEO Chris Morton

Thanks to ALTA’s advocacy efforts and those of our members, alongside pressure from Members of Congress, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced today it will postpone reporting requirements of the Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule until March 1, 2026.

This is a significant victory for ALTA and its members. 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 our well-founded concerns regarding implementation of this rule, especially for small businesses and, as a result, delayed the effective date.

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.

In announcing the delay, FinCEN released the reporting form. The failure to release this form was another reason ALTA requested FinCEN delay implementation of the rule. We informed FinCEN that without the final form, title companies would be unable to train their 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.

While today’s win is exciting, we will not take our foot off the gas on this rule that FinCEN’s own estimates indicate will cost the industry over $500 million dollars annually. ALTA will continue discussions with FinCEN, the administration and Members of Congress to reduce unnecessary burdens and protect members from costly, impractical requirements.