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IMPORTANT FINCEN COMPLIANCE UPDATE
Yesterday, the U.S. District Court for the Eastern District of Texas ruled in favor of a Texas title agency in Flowers Title Company v. Bessent, finding that the Financial Crimes Enforcement Network’s (FinCEN) new residential reporting rule (the “Rule”) is unlawful and ordered that the Rule be vacated.
In the court’s decision, a copy of which is attached, they found that the Rule exceeds FinCEN’s statutory authority under the Bank Secrecy Act.
Although the language of the court’s opinion is strong, this is not a final order and may still be appealed to the Supreme Court. Please also keep in mind, there are now split rulings on the enforceability of the Rule - as a Federal Court in Florida recently upheld the Rule in Fidelity National Financial v. Bessent.
As a result, CATIC recommends that its agents continue to comply with the Rule until a final, non-appealable order is issued.
We recognize the complexity and ongoing uncertainty of this situation. Please know that we are actively monitoring any further developments and will share any new information as it arises.
If you have any questions or concerns please contact your local underwriter or Erin Cabelus, CATIC’s Chief Compliance Officer – ecabeus@catic.com.
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