Breaking Down the March 1 FinCEN Changes: Impacts on Covered Deals and Trust Closings

The new FinCEN real estate reporting requirements taking effect March 1 are changing what escrow must collect on certain residential transactions—and files scheduled to close after that date are already being affected. If a transaction falls within the covered category, escrow may request detailed trust or entity documentation, beneficial ownership disclosures, and expanded buyer or seller financial information far beyond what’s typically included in a standard closing package.

This training breaks down what’s driving the change, clarifies what FinCEN actually does (and does not do), explains why residential real estate is now under greater scrutiny, and shows you how to keep deals moving when clients hesitate to provide the required documentation.

Inside the session, you’ll learn:

• FinCEN’s role in anti–money laundering enforcement and why real estate has become a focus

• What shifts on March 1, including expanded scope to trusts and nationwide applicability

• The three factors used to determine whether a transaction must be reported

• Why transactions can still fund and record even if concerns exist, since reporting occurs post-closing

• The true closing risk: incomplete information can prevent escrow from proceeding

• How beneficial ownership definitions become complex, particularly with layered entities and trusts

• How to respond when clients ask who qualifies as a beneficial owner—and what guidance to avoid giving

• Why title and escrow procedures may vary by company

• Practical strategies to prevent last-minute surprises and delayed closings

Agent reminder: If a client is uncertain about how to respond to beneficial ownership or trust-related questions, direct them to qualified legal or tax professionals. Do not provide legal advice regarding ownership determinations.