If you are a compliance officer working in any business that has connections, even indirectly, to real estate transactions, you are most certainly aware of the March 1, 2026 effective date of the new regulations from the Financial Crimes Enforcement Network, more commonly known as FinCEN, and you are hopefully already set up on your record keeping and reporting requirements.
The new regulations should be especially important to everyone with any connection to finance or sales in South Florida, for the area has had a long history of money launderers using real estate transactions to clean the proceeds of their clients' criminal acts, and to make investments for them to create cash flow.
Everyone involved in real estate sales and financing now has a new incentive to train their staff to recognize not only the red flags of money laundering, but to identify both the commonly employed methods and techniques, as well as as the more esoteric and obscure tricks laundrymen employ, given the new FinCEN regulations, and the increased risk factors that they represent.
Whether real estate professionals in South Florida will choose in 2026 to elevate their Customer Identification Procedures and Transaction Monitoring to the traditional level of Banking Best Practices, as part of an effective risk-based compliance program, is something that we will be closely watching.
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