Federal Court Vacates FinCEN Anti-Money Laundering Regulations for RRE

On March 19, 2026, a federal court in the Eastern District of Texas, Tyler Division, granted summary judgment in favor of a title company plaintiff, Flowers Title Companies, LLC, which challenged that the FinCEN Residential Real Estate Transfers Rule (RRE Rule) exceeded FinCEN's statutory authority under the Bank Secrecy Act. District Judge Jeremy Kernodle denied FinCEN's cross-motion for summary judgment and ordered that the RRE Rule be vacated in its entirety and remanded to FinCEN. 

Following the court decision, FinCEN issued the below guidance confirming that reporting persons are not currently required to file reports under the rule.

 “In light of a federal court decision, reporting persons are not currently required to file real estate reports with FinCEN and are not subject to liability if they fail to do so while the order remains in force.”

 There is still considerable uncertainty regarding the long-term impact of this ruling. Two other federal courts (one in Florida and one in Texas) have recently upheld the rule as lawful and constitutional. The government may seek a stay of the vacatur pending appeal, or appeal directly to the Fifth Circuit Court of Appeals.

 Frontier will continue to monitor developments and share updates as they occur. Please reach out to our office if you would like to discuss.