Mary Poppins鈥� famous line, 鈥淛ust a spoonful of sugar makes the medicine go down,鈥� simply does not work for compliance with FinCEN鈥檚 Residential Real Estate Rule (Final Rule). You can approach it with a good cup of coffee or tea by your side, along with your favorite tasty treat (did anyone say 鈥渓emon poppyseed cookie鈥�?), but you can鈥檛 sugarcoat the truth of it.  Collecting up to 111 data points and transcribing them into a complex reporting form promulgated by FinCEN is no easy feat. However, efforts are underway to make compliance with the Final Rule more understandable, bearable, and easier to achieve. How so, you may ask?     

In our last blog about FinCEN鈥檚 Final Rule, we briefly described a comprehensive two-day ALTA FinCEN Bootcamp training session held on June 2 and 3, 2025. Now we鈥檙e going to go a bit more in-depth with our coverage. 

Over the course of those two days, numerous speakers presented a variety of topics geared at providing background information, operationalizing advice, implementation requirements, and training materials for compliance with the Final Rule:

• Overview of Bank Secrecy Act (And Usefulness Of The Data Collected Under It)
  • Money Laundering and Real Estate
    • Real Life Examples Of Bad Actors Using Real Estate For Money Laundering; Resulting Real Estate Forfeitures And Treasury Auctions
  • 411 on FinCEN Residential Real Estate Rule (31 CFR 1031.320(b))
    • Who, What, When & How to Determine A Reportable Transaction
    • Expectations for Training, Reporting, and Record-keeping Costs
    • Penalties for Non-compliance (Civil & Criminal)
    • FAQs
    • Suggested Contractual Language for Residential Purchase Contracts
    • Suggested Schedule B-1 Commitment Language
    • Current Industry Lawsuits Against FinCEN
  • The Rule in Action (Hypothetical Scenarios)
  • How to Train Your Customers (Providing A Sample PowerPoint presentation For A 鈥淟unch & Learn鈥� That Can Be Branded And Used By ALTA Members)
  • The Collecting Is The Hardest Part (Data Points and Information Collection Forms)
  • Fun with Filing (How To Do It 鈥� Using The BSA-EFiling System)
    • Review Of 鈥淲ho鈥� Files per the Rule (i.e. The 鈥淲aterfall Cascade鈥�)
    • Designation Agreements For Someone Else to File
    • Registration For EFiling
    • System Requirements
    • Volume Of Covered Transactions
  • Training Your Staff
    • Selecting Subject Matter Expert (SME) Employees
    • Resources (FAQs, Published Rule)
    • Workflow Considerations
    • Record Retention And Storage
    • Staff Impact; Company Communications; Training for the Reporting Person

As you can see from the list above, there is a LOT to learn and do in order to prepare for the Final Rule鈥檚 impending effective date of December 1, 2025. Discussions about the new and Information Collection Forms developed by ALTA were incorporated into the training. These are complex forms intended to help the buyer鈥檚 and seller鈥檚 representatives provide all of the required data that will ultimately be included in the report to be filed through the BSA EFiling network. To access these forms via the hyperlinks provided, you must be logged into the ; these forms are available to ALTA members and to those who obtain a license to use ALTA鈥檚 policy forms. At the end of each form is a certification page for the seller鈥檚 and buyer鈥檚 representatives to sign, certifying to the completeness and accuracy of the information provided. We anticipate that these forms will be widely used across the industry, so it is important to understand and be familiar with them.

The idea behind the training is that if the rule, the requirements and the process are understood by all key stakeholders 鈥� including the real estate sales agents as well their customers 鈥� then securing their cooperation for data acquisition will be much easier for the closing agent charged with reporting to FinCEN. The ALTA Bootcamp segment entitled 鈥淗ow to Train Your Customers鈥� is tailored to educate everyone about the law and what they need to do to comply. For those of you who did not attend the Bootcamp, or who want a refresher, 星空传媒 星空传媒 plans to provide its own training to real estate sales agents toward the end of the summer and you are welcome to attend.

We have developed an 星空传媒 星空传媒 branded presentation, which you can also co-brand with your agency鈥檚 name, for you to offer to customers and real estate professionals. In addition, we will be offering a deep dive into the Final Rule starting in late summer or early fall presented by the 星空传媒 星空传媒 underwriting and education teams. This training will help you identify reportable transactions, understand available exemptions to the rule and navigate potential pitfalls which could result in non-compliance and potential penalties. The goal of this presentation will be to train our agents to be experts on the Final Rule well in advance of its December 1, 2025, effective date.  In the interim, we encourage you to monitor industry and 星空传媒 星空传媒 publications on FinCEN, review FinCEN FAQs currently available, , practice a dry run into the BSA Efiling Network, https://boir.org/, and speak to your production software vendor about their plans for an integrated filing process. It is never too early to start the process regarding the Final Rule.  

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Here鈥檚 a riddle for the title insurance and real estate industries: what does Dolly Parton鈥檚 song, 鈥淗ere You Come Again鈥� have to do with FinCEN, its Geographic Targeting Orders (GTOs), and its Final Real Estate Report Rule (Final Rule)?  Answer: the last verse of the song repeats the lyrics, 鈥淗ere you come again . . . And here I go鈥� several times, analogous to FinCEN鈥檚 multiple, back-to-back, ever-expanding GTO鈥檚 issued since 2016, culminating in its permanent Final Rule issued on August 28, 2024, and effective on December 1, 2025, and our efforts to adapt and comply with all of its changes and requirements. 

We first published a in November of 2024 discussing FinCEN鈥檚 Final Rule, its anticipated effective date of December 1, 2025, and the  things you should be thinking about to get an early start on operationalizing compliance with the numerous requirements.  Well, a lot has happened since then鈥攍et’s bring you up to speed.

What has the industry been up to?

First of all, industry stakeholders have been diligently working to try and reduce the impact of the Final Rule on your title insurance business. Some players have even started pushing back hard against the Final Rule.

• On April 14, 2025, East Texas Title  filed suit in the U.S. District Court, Eastern District of Texas, to get an injunction against the permanent FinCen Real Estate Rule from going into effect on December 1, 2025. Some of the legal arguments:
  • Violation of the Constitution鈥檚 separation of powers 鈥� title agents should not be 鈥渇orced to perform government surveillance on their clients by reporting private information from legitimate transactions鈥�
  • Constitution only grants Congress the power to regulate commerce between states and that the federal government has no standing to require businesses to collect information on real estate cash transactions that take place entirely within Texas
  • Fourth Amendment protects against 鈥渦nreasonable searches and seizures鈥� of 鈥減ersons, houses, papers, and effects,鈥� including business record – no right to require private business to violate the privacy of Americans.
    
• On May 20, 2025, a national underwriter  filed suit against Department of the Treasury and Treasury Secretary Scott Bessent, along with FinCEN and its director, Andrea Gacki, in the U.S. District Court, Middle District of Florida, Jacksonville Division.  Some of the legal arguments set out in their complaint include:
  • The rule exceeds FinCEN鈥檚 statutory authority
  • The rule is arbitrary and capricious
  • The rule violates the Fourth Amendment prohibition against warrantless searches
  • The rule violates the First Amendment鈥檚 prohibition on compelled speech
  • The rule exceeds any authority Congress could have delegated under the Commerce Clause or its other Article I powers
    
• On May 15, 2025, ALTA made a formal appeal to the Office of Management and Budget (OMB), asking for the 鈥淎nti-Money Laundering Regulations for Residential Real Estates鈥� Final Rule to be rescinded 鈥渋f changes are not made to lessen the overly burdensome requirements on small title companies.鈥� (See )
  

Second of all, ALTA took the lead and created a working group to develop information collection forms to capture the information required for FinCEN reporting under the Final Rule.  After all, FinCEN鈥檚 initial had 111 distinct fields so there will be a good bit of information to be collected! 

Third of all, ALTA has been working on creating helpful industry training webinars.  The first of these webinars was presented in March 2025 –  Learn How Proposed Real Estate Anti Money Laundering Rule Impacts You 鈥� and is available to watch as a free recording on Youtube at .  The second of these webinars was a comprehensive 2-day FinCEN Bootcamp training session held on June 2 and 3, 2025; while the Bootcamp was not a free event, we will be sharing valuable information from it in our future blogs and in agent training currently under development.  For now, you should know that the big takeaway from the Bootcamp is that it is NOT too early to begin operational preparations for the Final Rule.  It was pointed out that orders for cash transactions received in October and November could very well close in December and therefor be subject to the requirements of the Final Rule, so processes need to be in place to recognize and capture those early orders and ensure your agency鈥檚 compliance.  In fact, settlement agents are encouraged to register for the FinCEN filing portal in advance of the Final Rule鈥檚 effective date by going to and setting up a Supervisory User Account.  You can even prepare a practice report to understand the actual process and even provide your team with training. Just do not hit SUBMIT!

Lastly, on April 17, 2025, ALTA published based upon questions from their customers.  The questions involve numerous scenarios, and the answers do a good job of interpreting and applying the provisions of the Final Rule to the hypotheticals. 

What has FinCEN been up to since it鈥檚 publication of the ? 

On November 12, 2024, it released a to implement the Final Rule.  As with the posting of the Final Rule, the posting of the draft report form also has a preamble discussion, but if you want to skip over it and hop directly to the draft report section in the Appendix 鈥� Real Estate Report Summary of Data Fields, then click here .  

On June 5, 2025, FinCEN announced that the U.S. Department of the Treasury, on behalf of FinCEN, will submit the to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995 (PRA); the public comment period on the information collection request is open until July 7, 2025.  By law, an agency cannot collect information without displaying a valid OMB number, so this is another required step as FinCEN moves forward with its plans for a final report form to implement its Final Rule.  To skip the preamble and go directly to the Appendix-Real Estate Report Summary of Data Fields, click here .  

What has 星空传媒 星空传媒 been up to?

Members of 星空传媒 星空传媒鈥檚 legal team have participated in developing the ALTA information collection forms and trainings discussed above.  We recognize that all stakeholders in this process will need education to understand the benefits of the Final Rule as well as its impact on residential real estate transactions after December 1, 2025. Stay tuned for practical 星空传媒 星空传媒 agent training webinars starting later this summer. We will also offer programs for your real estate professional partners as their support of your information collection efforts will be critical to a smooth closing under the Final Rule. We are already working to train our internal team members so you will have a team of experts at your disposal. Then we will help 鈥渢rain the trainers鈥� so you are equipped to respond and educate your business referring partners as well.  One thing is clear, moving forward the more players in your real estate transaction who are up to date with the benefits of the Final Rule and the protections it offers, the more rapidly acceptance and adaptation will follow. 星空传媒 星空传媒 will be your expert now and as the Final Rule implementation becomes part of your standard operation procedures.  

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Remember the TV show The Weakest Link? Running from 2000 to 2012, the show enjoyed quite a bit of popularity back in the day. Host Anne Robinson鈥檚 catchphrase 鈥淵ou are the weakest link-goodbye!鈥� even became part of the cultural lexicon for a moment in time. A business鈥檚 cybersecurity strategy will inevitably have its own weakest link. No matter how well designed it is, no system is invulnerable to attack. For many businesses, vendor relationships are the weakest link. There are numerous reasons for that, ranging from third-party data access to weak authentication methods. Let鈥檚 explore how you can fortify these relationships and ensure you and your favorite vendors never need to say 鈥済oodbye.鈥�

Vendors: a beneficial but potentially risky relationship

A good vendor relationship can be highly beneficial, bringing cost savings, expertise and innovation that can translate into lasting competitive advantage. However, there is no question that vendors can introduce security risks for a business. One of the most significant is the potential for data leaks. If a vendor doesn鈥檛 have good security policies but has access to a business鈥檚 critical systems, that can be a potential attack vector for criminals.

But that鈥檚 just the tip of the iceberg. Vendors may use third-party tools with security gaps, rely on weak passwords, or fail to meet title industry security standards. Lastly, in the event of a security incident, a vendor may not have a dedicated incident response plan, which could lead to a disruption for your business.

Simple, straightforward security steps can help

While these risks are no doubt significant, there are a lot of simple steps you can take to make your vendor relationship more secure. The most important one is also the most obvious. Only give your vendor access to the systems and data they need to meet the conditions of your service agreement.

Beyond access control, there are several other precautions to take. It is wise to lay out cybersecurity roles, responsibilities and expectations at the start of any vendor engagement. Clear expectations help vendors handle your data responsibly, respond to incidents, and uphold security policies.

You and your vendor should also be on the same page on how you will respond if a security breach unfortunately does occur. Planning ahead can minimize disruptions and long-term damage to your business. Of course, all this hinges on first developing a trusting dynamic with your vendor. If you don鈥檛 communicate openly and transparently, it becomes much more difficult to collaborate on security goals and grow together.

Lastly, it is always a good idea to conduct regular security check-ins with your vendors. This is a good way to remain aware of the systems and data your vendor has access to. These meetings can also be a time to quickly and efficiently communicate any changes in your cybersecurity strategy.

The role of vendor security agreements (VSAs)

One of the best ways to make sure you are taking the precautions outlined above is by putting together a comprehensive vendor service agreement (VSA) at the beginning of a new vendor engagement. VSAs are a critical tool for managing security risks in third-party relationships, including data protection protocols, compliance and responsibilities in the event of a breach. Other provisions that are often included in a VSA encompass access controls, encryption requirements and multi-factor authentication (MFA) policies.

Additionally, a good VSA should include your agency鈥檚 incident response framework. If you鈥檙e considering developing a framework, detail how quickly a vendor must notify you of a security event and clearly list what steps they must take to help fix the issue. This can be an especially important provision. Data shows that the timeline from when an average vendor discovers a security problem to when they notify their client is often quite long. But it can be reduced when there is a contractual obligation to notify.[i]

Lastly, businesses should also explicitly define in their VSA how they want to approach periodic security audits for their vendors. It is perhaps the most effective strategy for ensuring alignment with evolving cybersecurity standards.

Toward an ever more productive and profitable partnership

It is a rotten feeling when a vendor causes a security incident, and you must deliver an Anne Robinson-style dismissal. With a little extra work, however, you can secure these relationships and help prevent security incidents before they start. When your vendor partnerships are safe, an even more productive and profitable dynamic becomes possible.

[i] 

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