ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Uncategorized

Flowers Title Companies sues FinCEN over reporting rule

May 1, 2025
Reading Time: 2 mins read
Treasury names FinCEN director

Bank Secrecy Act
Flowers Title Companies LLC v. U.S. Department of the Treasury
Date: April 14, 2025

Issue: Whether the Financial Crimes Enforcement Network’s (FinCEN) final rule requiring increased recordkeeping and reporting on non-financed real estate transactions violates the U.S. Constitution and separation of powers.

Case Summary: Flowers Title Companies LLC sued FinCEN in the Eastern district of Texas, challenging its final rule requiring increased recordkeeping and reporting on non-financed real estate transactions.

FinCEN’s reporting rule directs title companies to collect and report information about non-financed residential property transfers, including sensitive personal details. FinCEN claims it can impose these requirements because the Bank Secrecy Act (BSA) authorizes rules for reporting “any suspicious transaction relevant to a possible violation of law or regulation.” The rule allegedly treats ordinary real estate transactions as inherently “suspicious,” based on the possibility that mandatory, systemic reporting could uncover information relevant to potential legal or regulatory violations.

Flowers sued FinCEN, alleging it violated the separation of powers by promulgating the reporting rule. The separation of powers divides authority among different branches to prevent any single branch from becoming too powerful. According to Flowers, the rule is unconstitutional because FinCEN’s asserted statutory authority amounts to a roving power to require disclosures on any consumer transaction the agency deems fit.

Flowers also argued that the BSA impermissibly delegates legislative power. The Constitution requires Congress to make fundamental policy decisions and leave only minor details to the Executive Branch. Flowers claims the BSA fails to provide any intelligible principle for deciding whether or when to require reports on real estate transfers or systemic disclosures of non-financed residential transactions. As a result, Flowers contended that Congress failed to address the conditions under which businesses must gather and report information on routine transactions.

Next, Flowers argued that the BSA and reporting rule violated the U.S. Constitution by exceeding Congress’s Commerce Clause authority and infringing on states’ rights under the Tenth Amendment. Specifically, Flowers claimed the BSA improperly authorizes reporting requirements for purely intrastate transactions, which Congress lacks the constitutional power to regulate. Because Flowers conducts only intrastate real estate transactions between Texas residents and is not federally insured, it contended that applying the BSA to it is unconstitutional.

Finally, Flowers argued that the reporting rule violates the Fourth Amendment of the U.S. Constitution, which prohibits unreasonable searches and seizures of “persons, houses, papers and effects.” Flowers asserted that business records qualify as “papers” under the Fourth Amendment, so according to Flowers, the reporting rule amounts to a warrantless search by forcing reporting individuals and entities to gather and produce papers containing sensitive information for FinCEN.

Bottom Line: Flowers seeks a declaratory judgment, holding the reporting rule unconstitutional and setting it aside. Additionally, Flowers requests an injunction prohibiting FinCEN from enforcing the reporting rule.

Documents: Complaint

ADVERTISEMENT
Tags: Banking Docket
ShareTweetPin

Related Posts

Compliance question of the month: February 2025

Compliance question of the month: May 2025

Uncategorized
May 19, 2025

Compliance QOTM answers question on disclosure for large deposits under Regulation CC (Expedited Funds Availability Act).

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: May 19

Uncategorized
May 19, 2025

The Office of Foreign Assets Control announced the following sanctions action.

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: May 5

Uncategorized
May 5, 2025

The Office of Foreign Assets Control announced the following sanctions action last week.

Fourth Circuit rules 1st Advantage Federal Credit Union not liable for fraudulent transfer

Fourth Circuit rules 1st Advantage Federal Credit Union not liable for fraudulent transfer

Uncategorized
May 1, 2025

In a 3-0 decision, a Fourth Circuit panel ruled that financial institutions are not liable for fund transfers where the beneficiary name and account number do not match, unless the institution knew the mismatch at the time of...

ABA, trade groups file amicus brief supporting Bank of America in National Bank Act preemption lawsuit

Bank of America to pay FDIC $540M for allegedly underpaid premiums

Uncategorized
May 1, 2025

A Washington D.C. federal court granted the FDIC partial summary judgment, ruling that Bank of America must pay $540 million for allegedly underpaying its quarterly premiums from 2013 to 2014.

Fifth Circuit grants ABA mandamus, vacates transfer order for second time

D.C. Circuit panel modifies its partial stay, bars CFPB mass layoffs

Uncategorized
May 1, 2025

Following the evidentiary hearing, the court will determine whether the CFPB violated the preliminary injunction. In the meantime, the bureau is barred from carrying out its RIF.

NEWSBYTES

EEOC opens collection of EEO-1 data; submission deadline June 24

May 22, 2025

Mortgage rates rise

May 22, 2025

Existing home sales fall in April

May 22, 2025

SPONSORED CONTENT

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025
AI for Banks: A Starter Guide for Community and Regional Institutions

AI for Banks: A Starter Guide for Community and Regional Institutions

March 1, 2025

PODCASTS

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025

How a Georgia community bank supports government-guaranteed lending nationwide

May 1, 2025

Podcast: Quantum computing’s shakeup in payments, cybersecurity

April 24, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.