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Federal Register / Vol. 86, No. 233 / Wednesday, December 8, 2021 / Proposed Rules
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businesses incur higher costs compared to others? Why?
55. If program or other requirements were limited to purchases above a certain price threshold, how would this affect: i The burden of implementing such potential rules; and ii the utility of such potential rules for addressing money laundering issues in the real estate market?
56. What are the key benefits for a particular stakeholder e.g., a business, if the commenter is a business, if any, assuming issuance of the rules?
57. Are there alternative methods you believe FinCEN should consider as part of the overall rulemaking process that would effectively address the risk of money laundering in the all-cash real estate market? Please describe in detail.
58. What would be the costs, burdens, and benefits associated with requiring a new form that would report key elements of information deemed highly significant by FinCEN?
59. Please list any legislative, regulatory, judicial, corporate, or market-related developments that have transpired since FinCEN issued the 2003 ANPRM that you view as relevant to FinCENs current proposed issuance of AML regulations.
G. Should FinCEN promulgate general AML/CFT recordkeeping and reporting requirements for persons involved in real estate closings and settlements?
As explained above, FinCEN is considering promulgating a specific reporting requirement under 31 U.S.C.
5318a2, as amended by Section 6102c of the AML Act, and the questions in Part XI, Sections CE relate to such a requirement. The following questions for comment are generally intended to collect information about a potential rule that would instead apply traditional AML/CFT requirements to persons involved in real estate closings and settlements in lieu of a more specific requirement.
60. How should the term persons involved in real estate closings and settlements be defined?
61. What general factors should FinCEN consider in determining the scope of such a rule? That is, what businesses involved in residential or commercial real estate transactions should be required to comply with any potential rules, and what businesses should be excluded? What kinds of transactions, if any, should be excluded?
62. What are the potential benefits and costs to including real estate brokers and agents, title agencies and/or insurance companies, or real estate attorneys in the definition of persons
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involved in real estate closings or settlements?
63. Describe any requirements that FinCEN could promulgate that adequately address these risks apart from typical AML/CFT programs, recordkeeping, and reporting obligations.
64. Describe your views on whether typical customer identification and verification, AML, SAR, and CTR rules would appropriately address risks in the real estate market and what burden they would entail. What specific factors or characteristics in your business model would justify deviating from the typical AML/CFT program, recordkeeping, and reporting obligations?
65. What are the benefits and drawbacks of a new form requirement to file key information deemed important by FinCEN versus full AML/CFT
program requirements? Which would be better and why?
66. Are there particular concerns that smaller businesses may have regarding the implementation of an AML/CFT
program?
67. Please describe any programs that persons involved in real estate closings and settlements may already have in place to meet existing legal obligations, in addition to the requirement to report on Form 8300 the receipt of over $10,000 in currency and certain monetary instruments. In addition, detail your views on any voluntary best practices or guidelines you adopted to prevent money laundering, fraud or other financial crimes, the effectiveness of those programs, and whether any such practices should be integrated into any AML/CFT or SAR rules.
68. Do you think it is appropriate for customer identification and verification requirements to be applied to persons purchasing and selling real estate?
Would such requirements lead to a change in your business practices?
69. Please detail any aspects of possible FinCEN rules that may cause your business to operate at a competitive disadvantage compared to any businesses that offer similar services, if such businesses would be outside the scope of any FinCEN rules.
70. Should due diligence requirements, if any, apply equally with respect to buyers and sellers or should only buyers be included? Should it apply to all or should only certain types of buyers and sellers included?
71. Should AML/CFT programmatic requirements, if any, apply to residential transactions, commercial transactions, or both?
72. Should the rules be structured to require collection of information about only the most vulnerable or high-risk
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transactions? If so, how could FinCEN
minimize the burdens of such a requirement?
73. Should FinCEN implement information collection requirements only for transactions meeting a specified cost or value threshold? Should other criteria or standards be included to trigger such collection requirements?
74. How might such a rule impact your business? What benefits, costs, and burdens does the commenter anticipate if all the AML/CFT requirements in the CDD rules are incorporated into any proposed rules?
75. Assuming FinCEN proposes to issue traditional AML requirements, please describe the major impacts the business expects upon issuance of final rules. What specific requirements in these regulations do you expect may have the greatest impact on your operations?
76. Assuming FinCEN proposed to issue a new form requirement, what information should be included, to what AML/CFT benefit, and would the ability to mitigate or prevent money laundering risk in the industry be reduced when compared to implementing traditional AML/CFT requirements?
77. How would FinCENs regulatory requirements be integrated into your business current compliance program?
78. How much time would a covered business need to successfully integrate AML/CFT requirements into current systems and procedures?
79. Estimate the initial projected cost of implementation, and the projected long-term support costs for ongoing program maintenance. Do you anticipate being able to integrate or share implementation costs into your existing compliance-related budget?
80. Would certain businesses incur higher costs compared to others? Why?
81. If program or other requirements were limited to purchases above a certain price threshold, how would this impact: i The burden of implementing such potential rules; and ii the utility of such potential rules for addressing money laundering issues in the real estate market?
82. What are the key benefits for your business, if any, assuming issuance of the rules?
X. Regulatory Planning and Review This advance notice of proposed rulemaking is a substantive, nonsignificant regulatory action under Executive Order 12866 and has not been reviewed by the Office of Management and Budget.

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