On Thursday, March 19, a Texas Eastern District Court issued a ruling vacating the recent Financial Crimes Enforcement Network (FinCEN) Residential Real Estate Rule in its entirety. The judge in the case stated that FinCEN exceeded its statutory authority under the Bank Secrecy Act and ordered the rule be set aside. This interpretation contradicts a Florida Middle District decision last month which upheld the new rule.

As a result of this new development, FinCEN has temporarily suspended the new reporting requirement until further notice, stating, “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.”