Here’s what else to know about the new FinCEN rules

That date the entire title industry has been talking about for months is finally here. After one delay, new anti-money laundering rules from the U.S. Treasury Department  Financial Crimes Enforcement Network (commonly known as FinCEN) are now in effect as of March 1.

While these new standards have been highly publicized, our partners and customers shouldn’t expect too much to change, even if some of your transactions are subject to the extra reporting rules. Even so, our teams wanted to take time to address what these rules mean.

We also covered this topic late last year, so consider this piece extra guidance from your trusted title and closing team. First, we’ll cover when the extra reporting could be needed – though there are some exemptions, too.

A transaction may be reportable if it meets all three of the following:

●        The purchase is non-financed (cash) or privately financed

●        The buyer is an entity or trust

●        The property is residential (1–4 units, condo, co-op or certain vacant land)

Why are these changes happening?

These new rules are designed to stop criminals from using residential real estate transactions as targets for money laundering by requiring additional information from buyers involved in certain all-cash transactions.

What should customers expect?

There’s no catch-all statement for this. We simply don’t want you to be surprised if we ask you or your clients for more personal information, especially if your sale is cash and/or involves an LLC. This warning of sorts is nothing to fear. Instead, consider it part of our commitment to professionalism and integrity.

One last note:

Though money laundering seems like a crime only involving high dollar amounts, any transaction that meets the extra reporting criteria, regardless of dollar amount, could be subject to these rules.

We’ve said it once, and we’ll say it again: you're never navigating industry changes alone. Your First Dakota Title and TRN professionals are backed by the support and guidance of our underwriters, the American Land Title Association and other trusted resources to stay informed on the latest FinCEN rules and what they mean for you! Reach out to your local office anytime with questions or concerns.