March 1 FinCEN Change Explained: Covered Transactions, Trusts, and Closings

Feb 12

FinCEN real estate reporting rule March 1 is changing what escrow must collect on certain residential closings—and it’s already impacting escrows that will close after March 1. If your deal is a covered transaction, escrow may request trust/entity details, beneficial owner information, and more buyer/seller financial data than you’ve ever seen in a normal file.

In this training, you’ll learn why this is happening, what FinCEN is (and what it isn’t), why the government is focusing on residential real estate, and how to keep your transactions from stalling when clients hesitate to provide required information.

In this video you’ll learn:

What FinCEN does (anti–money laundering) and why real estate is targeted
What changes on March 1 (scope expands: trusts + nationwide reach, no threshold discussed)
The 3 criteria used to determine if a transaction is reportable
Why deals still close—even if suspicious—because reporting happens after close
The real closing risk: missing data = escrow can’t close
How “beneficial owner” definitions get complicated (especially for trusts)
What agents should say (and what NOT to advise) when clients ask who’s who
Why escrow/title workflows may look different company-to-company
Practical steps to prevent last-minute chaos and closing delays

Agent reminder: If clients are confused or unsure how to answer beneficial owner/trust questions, refer them to an attorney or CPA. Avoid giving legal advice on identity/beneficial ownership determinations.