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December 20, 2021
New NAFCU Reg Alert details FinCEN’s ANPR on real estate reporting
NAFCU Friday sent members a Regulatory Alert to break down the Financial Crimes Enforcement Network's (FinCEN) advance notice of proposed rulemaking (ANPR) to solicit feedback on requiring certain persons involved in real estate transaction to collect, report, and retain information for non-financed real estate transactions.
Through the Regulatory Alert, NAFCU highlights:
- FinCEN is considering a potential rulemaking to minimize the risks posed by non-financed real estate transactions, and looks to implement a consistent national standard;
- FinCEN is also considering alternatives, such as a specific reporting mechanism where covered persons report certain information, similar to current Geographic Targeting Orders (GTOs), or a general mechanism that would require covered persons to establish Bank Secrecy Act (BSA) programs; and
- FinCEN has also posed an alternative that is a 'cascading' reporting obligation on different entities depending on their involvement in the transaction, but at least one entity would report the necessary information.
In addition, NAFCU notes credit unions are already responsible for filing and reporting suspicious activity reports (SARs) involving real estate transactions when traditional financing is involved.
Comments on the ANPR are due to NAFCU Jan. 12 and can be submitted through the alert; comments are due to FinCEN Feb. 7.
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