FinCEN is on Court Hold Again

The FinCEN Residential Real Estate Anti-Money Laundering (AML) Rule has been put on court hold again due to ongoing legal challenges regarding the costs, efforts, and privacy issues affecting the private sector.

On March 19, 2026, a federal district court in Texas vacated the rule, finding that the Financial Crimes Enforcement Network (FinCEN) exceeded its statutory authority. Consequently, reporting lenders and closing attorneys are not currently required to file real estate reports with FinCEN and are not subject to liability for failing to do so while the court order remains in force.

Here is a summary of the current guidance from SCR regarding the hold:

SCR Forms Status
SCR is waiting to see if the Department of Justice (DOJ) or Treasury appeals the court decision before making changes to forms/contracts. This decision on an appeal is expected about 30 days from now. The forms impacted include the SCR800 FinCEN addendum and the FinCEN language/checkbox on the SCR310 contract.

Recommendation for Members (What to Do Now)
The SCR legal hotline recommends always alerting your closing attorneys as soon as possible when a real estate transaction involves cash-paying entity parties. This practice is recommended for practical reasons beyond FinCEN, such as:

  • Coordinating good funds payment.
  • Avoiding wire fraud crimes.
  • Evaluating the entities and their authority to contract.

Entity parties can include corporations, partnerships, joint venture agreements, LLCs, trusts, estates, and similar structures. SCR specifically recommends that if you know you have a cash, entity buyer, you should alert the closing attorney in case the FinCEN hold situation changes in the coming weeks.

For additional information,

NAR has posted this FinCEN resource: https://www.nar.realtor/washington-report/court-decision-on-fincen-residential-real-estate-rule

SCR addressed FinCEN during SCR’s weekly update: https://www.facebook.com/share/v/1E71rJnGas/

Members should contact their BIC, brokerage attorney, and the SCR legal hotline (803-772-5206 or info) for real estate legal issues and questions, including FinCEN.

Posted by: Byron King on 3/31/26 (This information is only accurate as of 3/31/26. You must contact SCR for updates and changes to this information after 3/31/26, as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)

This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.