FinCEN Proposal for Residential Real Estate “Closers”

Last week, you may have seen that FinCEN proposed a new rule related to residential real estate transactions. The good news is, this will NOT directly affect financial institutions and instead will apply to those involved in real estate closings. For example, settlement agents, title insurance providers, attorneys, etc.

The proposed rule would require applicable parties to keep records and submit reports for any non-financed transfers of residential real property to specified legal entities and trusts on a nationwide basis. Non-financed transfers to an individual(s) would not be covered. The proposed rule lays out specific information that applicable parties would be required to collect and submit to FinCEN via a “Real Estate Report”, which is essentially a modified Suspicious Activity Report form. Officials believe these reports will help a variety of governmental and law enforcement agencies to prevent anonymous money laundering through the purchase of residential real property.

Again, while this will not directly affect financial institutions, it is good to know what is being required of others within the real estate industry and that you are not alone in helping to combat money laundering, terrorist financing and other criminal activity.

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Amy Kudlacek

Amy brings many years of banking and compliance experience to Banker’s Compliance Consulting. She has worked for both large and small financial institutions and spent time working in every area of a bank. She started out as a teller in college and eventually became a branch manager. Her love, however, was always compliance. Amy began her career with Banker’s Compliance Consulting in 2000. Her knowledge and experiences have allowed her to develop a well-rounded and practical approach to regulatory compliance. Amy is CRCM certified, has a Bachelors Degree in Business Administration and is a graduate of the ABA Compliance School. Amy & her husband have two children at home and stay busy following their activities. They spend a lot of time in the bleachers!

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