New Regulation Requires GSEs to File Suspicious Activity Reports with FinCEN

February 25, 2014

The Financial Crimes Enforcement Network (FinCEN) finalized anti-money laundering (AML) regulations requiring the government sponsored enterprises to develop programs for the prevention of money laundering and to file suspicious activity reports (SARs) with FinCEN. The final rule adopts, without significant change, all of the regulatory provisions contained in FinCEN’s November 2011 Notice of Proposed Rulemaking. The rule requires Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks to file SARs directly with FinCEN instead of the current practice of filing less detailed reports through their regulator, the Federal Housing Finance Agency (FHFA). This will provide law enforcement and regulators with a more complete and timely national picture of suspected mortgage fraud and money laundering, as well as assist with investigations and prosecutions of significant mortgage fraud schemes. FinCEN closely coordinated this rulemaking with the FHFA, to which FinCEN is delegating responsibility for examining the GSEs for compliance with the regulations. This rule is effective 60 days after publication in the Federal Register. The compliance date is 180 days after publication in the Federal Register.


Contact ALTA at 202-296-3671 or communications@alta.org.

SoftPro, based in Raleigh, NC, offers a mature suite of products, designed specifically for the closing and title industry. Our mission is to serve our client base, with best-in-class products and services. Our products are modular so we don't force you to buy anything you don't need. You can always add on as your business grows. Unlike other software companies, we view the sale as the beginning of the relationship rather than the end. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.