FinCEN is a bureau of the U.S. Department of Treasury that helps protect the financial system by tracking money laundering, fraud, and other financial crimes. The FinCEN Residential Real Estate Anti-Money Laundering Rule requires certain all-cash and non-financed residential real estate purchases by entities or trusts to be reported to the federal government, including information about the real people who own or control the buyer.

Key Terms You Need to Know

This rule is designed to prevent money laundering through real estate while allowing legitimate transactions to proceed with advance planning and transparency. The information is gathered and reported to FinCEN in what is known as a Real Estate Report.

Beneficial Ownership Information (BOI)

Details about the real people who ultimately own or control a legal entity

Real Estate Report

The filing submitted to FinCEN containing transaction and party information

Reporting Cascade

The priority order that determines who must file the report‍

Reporting Deadline

The filing deadline is the later of: (i) 30 calendar days after closing; or (ii) the last day of the month following the month of closing.

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