UPDATE FINCEN:Federal Court Strikes Down FinCEN's Residential Real Estate Reporting Rule

On March 19, 2026, U.S. District Judge Jeremy D. Kernodle of the Eastern District of Texas ruled that FinCEN exceeded its statutory authority under the Bank Secrecy Act when it issued its Residential Real Estate Reporting Rule. The case was brought by Flowers Title Companies, LLC, which challenged the regulation under the Administrative Procedure Act. Judge Kernodle found that FinCEN's premise — that cash transactions involving entities and trusts are inherently suspicious — lacked statutory support.

Reporting requirements are currently not being enforced pending any appeals.