FROM THE OFFICE OF PUBLIC AFFAIRS

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The Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN) today issued an advance notice of proposed rulemaking concerning a requirement that persons involved in real estate closings and settlements establish anti-money laundering programs.  This rule will serve as another tool in the Administration’s continuing effort to fight illicit money laundering.

This proposal is part of Treasury and FinCEN’s work to implement section 352 of the USA PATRIOT Act, a provision that requires all financial institutions – including those involved in real estate closings and settlements – to establish anti-money laundering programs. 

The advance notice of proposed rulemaking seeks additional comment and input to identify the money laundering risks associated with real estate closings and settlements, as well as defining who should fall within the scope of the regulation.  The focus is on real estate professionals.  Section 352 requires Treasury to issue regulations establishing an anti-money laundering program that is commensurate with the size, location and activities of persons involved in real estate closings and settlements.  Because so many different categories of people and businesses participate in real estate closings and settlements, Treasury and FinCEN are seeking more insight from those real estate professionals who may be affected by this rulemaking.  Their input will play an important role in developing the new rules.  The Treasury Department commends them for the efforts they have already taken to help identify the many participants and the roles they play in the real estate closing and settlement process. This advance notice of proposed rulemaking provides Treasury and FinCEN with an opportunity to continue discussing the various risks and regulatory issues while soliciting public comment prior to issuing a proposed rule.

Written comments on the advance notice of proposed rules may be submitted within 45 days of its publication in the Federal Register, which is scheduled to occur later this week.

The advance notice of proposed rulemaking is attached below:

Related Documents:

• 352 Real Estate