Treasury Issues 30-Day Notice on Residential Real Estate Reporting Rule & Financial Integrity

The United States Department of the Treasury has announced its intention to submit the Real Estate Report (RER) information collection request to the Office of Management and Budget (OMB), in line with the Paperwork Reduction Act of 1995. This step marks a critical procedural milestone in the implementation of the Residential Real Estate Rule, which comes into force on 1 December 2025.

Transparency Drive in US Real Estate Market

The Residential Real Estate Rule requires designated real estate professionals to report and retain data concerning certain non-financed transfers of residential real estate to legal entities and trusts deemed high risk. This measure directly targets the long-standing exploitation of the American property market by criminal actors seeking to launder illicit funds under the cover of anonymous purchases.

By capturing beneficial ownership information and transactional details, the rule aims to provide law enforcement, intelligence agencies, and the Treasury with the tools needed to trace illicit finance, disrupt money laundering schemes, and protect national security. This action also aligns with wider efforts to address price inflation and housing market distortion caused by opaque cash transactions.

Call for Public Comments by 7 July 2025

The Treasury is inviting public feedback on the proposed data collection framework until 7 July 2025. Stakeholders, including compliance professionals, real estate firms, anti-money laundering (AML) experts, and civil society organisations, are encouraged to submit comments during this 30-day period.

The information collection notice is expected to outline data elements such as the identity of beneficial owners, the structure of acquiring entities, and documentation standards. These records will underpin enforcement capabilities and inform broader risk assessments within the sector.

Reinforcing US Financial Integrity

This move by the Treasury, acting through the Financial Crimes Enforcement Network (FinCEN), reflects a broader policy shift towards greater corporate transparency and accountability in real estate. It builds upon recent initiatives like the Corporate Transparency Act and FinCEN’s Geographic Targeting Orders (GTOs), signalling that residential real estate is now firmly within the regulatory perimeter.

By closing critical gaps in the AML regime, this rule enhances the US's ability to meet international standards set by the Financial Action Task Force (FATF) and to deter misuse of its real estate market by transnational criminal networks, corrupt actors, and sanctions evaders.

Next Steps

Following public consultation, the Treasury will assess comments and prepare a final information collection framework. The Residential Real Estate Rule will become enforceable on 1 December 2025, with compliance obligations affecting professionals involved in high-risk, non-financed residential property transfers nationwide.

Read the Federal Register Notice here.