FinCEN Caves to Industry Pressure: Real Estate AML Compliance Deadline Pushed to March 2026

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News Flash

FinCEN Blinks: New Real Estate AML Rules Pushed to March 2026

The U.S. Treasury's Financial Crimes Enforcement Network just bought you three extra months.

FinCEN announced it's delaying its "Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule" from December 1, 2025, to March 1, 2026.

Why the delay? Industry pushback worked. Real estate professionals raised serious concerns about the complexity and administrative burden these new reporting requirements would create for brokerages, title companies, and everyone else caught in the compliance web.

Here's what the industry is preparing for: The rule targets non-financed residential real estate transfers involving legal entities like LLCs and trusts. You'll need to collect detailed information on beneficial owners behind these entities when they purchase residential properties.

The goal is stopping money launderers from using anonymous shell companies to hide illicit funds in real estate. Fair enough. But the reporting requirements are extensive. FinCEN has released the finalized reporting form for review.

Government Shutdown Stalls Federal Construction Projects

Federal construction projects nationwide hit the brakes as the government shutdown that began October 1st creates a bureaucratic traffic jam.

Here's the twist: It's not about money. Many projects have funding available, but contracting officers and oversight staff are furloughed. No approvals. No contractor payments. No project modifications.

The ripple effect extends beyond federal workers. Small businesses and contractors heavily dependent on federal projects face devastating economic impacts as payment schedules get disrupted and project timelines become uncertain.

Even maritime programs took a hit. The Federal Maritime Commission closed operations entirely. Meanwhile, federal courts are operating temporarily using prior fee balances, but that's the exception.

The shutdown stems from congressional gridlock over funding disputes, including healthcare funding reversals.

For construction industry stakeholders, expect project timeline uncertainty, payment schedule disruptions, and increased costs from delays. Once the shutdown ends, there'll be a massive backlog of federal approvals to work through.

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More You Should Know

• Mortgage Rates Climb Again: The average 30-year fixed mortgage rate has climbed for a second consecutive week to 6.34%, potentially further dampening housing market activity despite recent Federal Reserve rate adjustments. [Source]

• Mortgage Rates May Fall in October: Despite potential market uncertainties stemming from a government shutdown, experts forecast 30-year mortgage rates could decrease to 6.4%-6.5% by the fourth quarter of 2025. [Source]

• Fall Favors Home Buyers: The fall 2025 housing market offers an advantageous "sweet spot" for buyers due to a significant 15-20% increase in national housing inventory and homes staying on the market longer, creating more choices and negotiation room. [Source]

• States Sue Zillow, Redfin: A coalition of five U.S. states has filed an antitrust lawsuit against Zillow and Redfin, alleging an anticompetitive pact regarding rental listing advertisement sales. [Source]

• Construction Market Eyes Trillions: The global construction market is poised for substantial growth, projected to nearly double from $13.57 trillion in 2024 to $25.47 trillion by 2034, driven by urbanization, population growth, and technological advancements like BIM, modular construction, green building, AI, and IoT. [Source]

• Megaprojects Boom, Housing Bust: The construction industry is experiencing a stark contrast, with megaproject spending surging 53% year-over-year, while residential construction endures its third consecutive year of decline, reminiscent of the 2008 Great Recession, with a recovery not expected until 2026. [Source]

• Offsite Construction Market Surges: The global offsite construction market is projected to expand significantly, growing from $172 billion in 2024 to $257 billion by 2030, driven by rapid urbanization, a shortage of skilled labor, and technological advancements. [Source]

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