District court vacates FinCEN’s residential real estate reporting rule

On March 19, the U.S. District Court for the Eastern District of Texas vacated a previously effective final rule issued by FinCEN requiring reporting of any non-financed residential real estate transfers to entities or trusts. The court held that the rule exceeded FinCEN’s statutory authority under the Bank Secrecy Act, finding that neither provision cited by the agency — a requirement for suspicious transaction reports and authority to mandate institutions maintain procedures for compliance —... By: Orrick, Herrington & Sutcliffe LLP