In a major move to combat financial crimes, the Treasury Department has finalized two long-awaited rules aimed at preventing criminals from laundering illicit money through investments and real estate. The regulations, set to take effect by December 2025 for residential transactions and January 2026 for investment adviser activities, represent significant changes to the US anti-money-laundering framework.

The first rule requires certain categories of investment advisers to screen for and report suspicious activity, while the second rule mandates at least one party in a cash-based real-estate sale to file a report when the recipient is a legal entity or trust. These measures aim to plug critical gaps in the US financial system’s safeguards, which have been exploited by nefarious actors like Russian oligarchs.

Industry groups and anticorruption advocates alike have welcomed the new rules, with some expressing gratitude that Treasury has taken their recommendations into account. The National Association of Realtors praised the “pragmatic, risk-based approach” to combating money laundering. Transparency International hailed the measures as a crucial step in disrupting criminal networks.

The Financial Crimes Enforcement Network (FinCEN) has been working on these regulations for years, with proposals dating back to 2003 and 2015. Industry participants have pushed back against certain aspects of the rules, but FinCEN has incorporated feedback into the final versions.

The Treasury’s efforts to combat financial crimes continue, with a new corporate ownership database set to debut this year as part of broader anti-money-laundering regulations. These developments underscore the administration’s commitment to countering corruption and protecting national security.

About The Real Estate Blvd

The Real Estate Blvd (TREB) is a leading real estate brokerage based in Orlando, Florida, serving Orange, Seminole, and Osceola counties. With a team of experienced Realtors and a deep understanding of the local market, we’re dedicated to delivering exceptional results and personalized service to our clients. Whether you’re buying, selling, or investing in property, TREB is your trusted partner for all your real estate needs.