A final version of an anti-money laundering rule — in the works since December 2021 — is finally out from the federal Financial Crimes Enforcement Center, or FinCEN. It goes into effect December 1, 2025, and affects many types of personal residences, although not entire larger multifamily properties.

In the works since December 2021, the first version of the rule was proposed in February 2024 with the final release expected in mid-August. Apart from the many anti-money laundering regulations in effect for different sectors of the economy, this rule is focused on real estate because of concerns over how large cash property transactions can be a form of money laundering.

This is one of two rules passed — the second for investment advisors — to "increase transparency, limit the ability of illicit actors to anonymously launder illicit proceeds through the American housing market, and bolster law enforcement investigative efforts," according to a FinCEN press release.