Latest FinCEN Rule Struck Down: Now What?
A few months ago, we were bracing for a new FinCEN Rule, with lots of new requirements intended to prevent and reduce money laundering. The stakes were high and the impact promised to be far-reaching. Only a month in, a federal judge has struck the rule. What now? Here’s what we know.
Why was the FinCen RRE Rule Vacated?
In a decision issued March 19, 2026, Judge Jeremy D. Kernodle (U.S. District Court for the Eastern District of Texas) ruled that the federal government’s Financial Crimes Enforcement Network (FinCEN) overstepped their legal authority with the rule and vacated it in full.
In short, the court found FinCEN exceeded its legal authority under the Bank Secrecy Act of 1970 because the rule treats an entire category of common transactions as inherently suspicious.
“FinCEN’s explanations are vague, conclusory, and unpersuasive. The fact that some bad actors have conducted non-financed real estate transactions does not make such transactions categorically ‘suspicious.’ If it did, then nearly every type of transaction would be ‘suspicious,” according to Judge Kernodle.
Though his ruling occurred in Texas, the decision applies throughout the United States.
Is It Gone Forever?
With legal decisions, there are few guarantees. Since an appeal is possible, the title & escrow industry can’t fully dismiss it. Title & escrow companies may opt to maintain their current data collection systems and practices in place. Unwinding them is time-consuming, and would leave them scrambling if FinCEN ultimately prevails and enforces the rule after appeal.
Stay Ready, No Matter What
Buying or selling residential real estate is complicated, especially with legal requirements and processes in flux. BNT uses industry-leading tools and expertise to accurately track, document, and report all residential real estate transactions so you can move forward with peace of mind.
Whether the ruling remains vacated or goes back into effect with changes and amendments, our Tennessee and Kentucky Title Attorney will be prepared. Have questions about cash real estate transactions for a property you’re buying or selling? Book a consultation with us today and move forward with confidence.
