November 14, 2024 FinCEN Issues Rules to Safeguard Residential Real Estate, Investment Advisers Sectors from Illicit Finance

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued two (2) rules in an effort to help safeguard the residential real estate and investment adviser sectors from illicit finance. The residential real estate rule will require certain industry professionals to report information to FinCEN about non-financed transfers of residential real estate to a legal entity or trust, which present a high illicit finance risk. The effective date of this rule is December 1, 2025.

The investment adviser rule will apply anti-money laundering/countering the financing of terrorism (AML/CFT) requirements-including AML/CFT compliance programs and suspicious activity reporting obligations-to certain investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC), as well as those that report to the SEC as exempt reporting advisers. FinCEN is extending the date for compliance with the requirements of this rule from that proposed in the NPRM to January 1, 2026. For additional information, please see https://urldefense.com/v3/\_https://linkprotect.cudasvc.com/url?a=https\*3a\*2f\*2fwww.fincen.gov\*2fnews\*2fnews-releases\*2ffincen-issues-final-rules-safeguard-residential-real-estate-investment-adviser&c=E,1,t6AsC5yrQ-K9Bft2gMYiOVzM9FJjG8U-W4tbei59hFOMhQjgXnmJ64A7NhDPKUCfv0Sx0Mv3cLIJVKAGKN4PtWBWzTlxzk-nLkJM9R8SVedwKO3Xrx1s&typo=1&ancr\_add=1\_;JSUlJSUl!!Hj18uoVe\_Lnx!veHsjDEwmGswhnhauOauMaV0ae9IHWsCS6s0\_tVi28zUv8MvAWyuwsrSHi8Zu1jxfa20MsI27pOkDTnOFMHrqrA$https://www.fincen.gov/news/news-releases/fincen-issues-final-rules-safeguard-residential-real-estate-investment-adviser See also, FinCEN Residential Real Estate Rule Fact Sheet, Frequently Asked Questions on Real Estate Reports, FinCEN Investment Adviser Final Rule Fact Sheet, and U.S. Strategy on Countering Corruption on this webpage.