The Financial Crimes Enforcement Network today released two final rules requiring certain residential real estate professionals and investment advisers to report suspicious activity tied to illicit finance. The proposed rules were originally published in February.
The first rule requires the reporting of information to FinCEN about non-financed transfers of residential real estate to a legal entity or trust, but excludes banks from reporting obligations. Based on the way FinCEN initially assigned reporting responsibilities, the original proposal would have applied to banks that perform some of the real estate-related actions covered by the rule. The American Bankers Association recommended excluding banks as the institutions are already subject to robust BSA regulation, and FinCEN adopted the recommendation.
The second rule applies Bank Secrecy Act requirements to certain investment advisers registered with the Securities and Exchange Commission, as well as those that report to the SEC as exempt reporting advisers.
