June 2025 CloseSimple Webinar: FinCEN: What We Know & What You Can Do About It (Now)

The real estate industry is on the verge of a significant regulatory change. On December 1, 2025, new nationwide reporting requirements from the Financial Crimes Enforcement Network (FinCEN) will go into effect, and it’s crucial for every title and settlement professional to be prepared.

In a recent webinar, we had the privilege of hosting Richard Welshons, the current President of the American Land Title Association (ALTA), to discuss these impending changes. With 41 years in the title business, Richard offered invaluable insights into what these regulations entail and how professionals can begin to prepare.

What is Happening with FinCEN?

For years, FinCEN has worked to combat money laundering in the real estate sector through Geographic Targeting Orders (GTOs) in specific high-activity markets. These orders required the reporting of beneficial ownership information for cash transactions over a certain dollar amount.

Now, this program is expanding nationwide. The most significant change is the elimination of a minimum dollar threshold. This means that any transfer of real estate to an entity (like an LLC or trust) without traditional financing will require reporting, regardless of the property's value. This even includes transfers for estate planning purposes.

What This Means for You

This new rule will undoubtedly add a new layer of responsibility to the closing process. As Richard pointed out, the burden of collecting and reporting this beneficial ownership information will largely fall on title and settlement agents.

During our conversation, we highlighted several key areas that will be impacted:

• Increased Workload: The need to identify beneficial owners for all applicable transactions will require a new level of due diligence.
• New Processes: Title companies will need to develop and implement new internal workflows to ensure compliance, from initial transaction review to final reporting.
• Client Communication: Explaining these new requirements to clients, including why you need personal information for beneficiaries of a trust or members of an LLC, will be a delicate but necessary conversation.

How to Prepare Now

The good news is that there are concrete steps you can take today to get ahead of the curve:

1. Educate Yourself and Your Team: Take the time to understand the nuances of the new regulations. Resources from ALTA are an excellent starting point.
2. Develop a Process: Start thinking about how you will identify qualifying transactions, who on your team will be responsible for collecting the information, and how you will report it to FinCEN.
3. Communicate with Your Partners: Begin talking to your real estate agent partners. They will be on the front lines with buyers and can be instrumental in helping to gather the necessary information.

While these new regulations may seem daunting, the industry has a history of adapting to change. By starting to prepare now, you can ensure a smooth transition for your company and your clients.