New FinCEN Rule Expands AML and KYC Requirements to Real Estate and Investment Advisers: Are You Ready?
Hauke Schupp
Director, Risk Practice, Clarendon Partners
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On August 28, 2024 FinCEN issued the final rule to “Safeguard Residential Real Estate and Investment Adviser Sectors from Illicit transactions”. This new rule expands Anti-Money Laundering (AML), Know Your Customer (KYC), and Suspicious Activity Reporting (SAR) programs to non-financed real-estate transactions and investment advisers.
Here are some key highlights of the upcoming changes:
Real Estate
As of December 1, 2025, at least one party in a residential real-estate sale is required to report when the transaction is non-financed (meaning no extension of credit or financed by a lender without an obligation to maintain an AML program) or the property is transferred to a legal entity or trust.
Investment Advisors
As of January 1, 2026, certain investment advisers have been added to the definition of “financial institution” under the BSA’s regulations and will be required to have AML/KYC programs in place and to screen for and report their clients’ suspicious activity.
Are your AML/KYC and SAR programs capable and ready to comply with this new rule? At Clarendon Partners, we understand the complexities and challenges that come with regulatory compliance. Our team is here to help you navigate these new requirements seamlessly by helping with:
Comprehensive readiness assessments of your current AML/KYC and SAR programs
Tailored design and evolution of your AML/KYC and SAR programs
Expertise in AML/KYC and SAR compliance and risk management
Read more about the final rule here.
Contact Clarendon Partners
Contact us today at evolve@clarendonptrs.com and let our experts help you ensure compliance with the new FinCEN rule by the due dates and safeguard your business against illicit transactions.