Feds Clamp Down: New Rule Targets Anonymous All-Cash Real Estate Deals to Combat Money Laundering

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In a decisive move to combat money laundering, the U.S. Treasury Department has unveiled a new rule targeting all-cash real estate transactions. Effective December 1, 2025, real estate professionals must disclose the true identities of buyers using shell companies to purchase residential properties. This regulation aims to prevent illicit actors, including drug cartels and corrupt foreign officials, from exploiting the U.S. housing market to launder money. Treasury Secretary Janet Yellen emphasized that this rule closes significant loopholes in the financial system, reinforcing the integrity of the U.S. real estate market.

The rule, part of broader efforts to enhance transparency in financial transactions, will particularly impact transactions where anonymity is traditionally maintained. While cash deals are becoming more common due to high mortgage rates and investor activity, this new requirement ensures that the sources of such funds are legitimate.

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Under the rule, closing agents or other designated professionals must report detailed information about the buyer, seller, and transaction to the Financial Crimes Enforcement Network (FinCEN). This effort builds on existing geographic targeting orders, expanding scrutiny to all cash transactions across the nation.

The American Land Title Association has raised concerns about the potential financial impact on small businesses, estimating compliance costs at over $500 million annually. Despite this, the industry acknowledges the importance of these measures in safeguarding the market from criminal activity.