Fidelity sues FinCEN, Bessent over all-cash transaction reporting requirements

The housing industry and the Financial Crimes Enforcement Network (FinCEN) have been in disagreement for a long time regarding reporting requirements for all-cash residential real estate transactions. Fidelity National Financial (FNF) has now taken action.
FNF, along with its subsidiary Fidelity National Title Insurance Co., has filed a lawsuit against the Department of the Treasury, Secretary Scott Bessee, FinCEN, and Director Andrea Gacki in U.S. District Court in Jacksonville. The lawsuit challenges the Anti-Money Laundering Regulations for Residential Real Estate Transfers rule, set to go into effect in December 2025 under the Biden administration.
The new rule mandates that title firms report specific details on all-cash home purchases, including personal information, payment details, and information about purchasing entities. FNF believes the rule is unreasonable.
According to the lawsuit, the rule would result in a 4,000% increase in disclosure reports, leading to significant costs and privacy concerns without clear benefits in combating money laundering. FinCEN estimates the rule would require hundreds of thousands of reports annually, with costs totaling millions of dollars. FNF argues that FinCEN is overstepping its authority by requiring reporting on all transactions, not just suspicious ones.
The lawsuit also claims that the rule violates constitutional rights and seeks to block its implementation. ALTA has noted some industry recommendations were incorporated into the rule, but FinCEN and the Treasury have not provided a comment on the matter.
FNF supports FinCEN’s mission but believes the rule goes beyond legal boundaries and raises privacy issues. They hope for a swift resolution to the dispute.