Understanding how FinCEN’s new reporting requirements apply to payments processed through Payload.
Overview
Beginning March 1, 2026, FinCEN’s Residential Real Estate (RRE) Rule requires certain real estate professionals to file reports with FinCEN for non-financed residential property transfers involving entities (such as LLCs or corporations) or trusts. This article explains what the rule requires, how it relates to payments processed through Payload, and what it means for your workflow.
What Is the FinCEN RRE Rule?
The rule (31 CFR 1031.320) targets a specific category of real estate transactions that have historically been used to launder money: cash purchases of residential property through entities and trusts. When a buyer uses an LLC, corporation, partnership, or trust to purchase residential property without traditional bank financing, the closing professional must file a Real Estate Report with FinCEN.
The rule does not apply to:
- Transactions where the buyer is an individual purchasing in their own name
- Financed transactions (purchases involving a mortgage from a financial institution with an AML program)
- Commercial real estate transactions
- General legal payments, retainers, settlement disbursements, or other non-real-estate payments
Who Files the Report?
The rule assigns the filing obligation to a single “reporting person” for each covered transaction, determined by a seven-tier cascade of real estate professionals:
- The closing or settlement agent listed on the closing statement
- The person who prepares the closing or settlement statement
- The person who files the deed with the recordation office
- The person who underwrites an owner’s title insurance policy
- The person who disburses the greatest amount of funds
- The person who evaluates the status of the title
- The person who prepares the deed or other transfer instrument
Payment processors and payment platforms are not included in this cascade. Payload is not a reporting person under the rule.
What Payment Information Must Be Reported?
For each payment made by or on behalf of the transferee entity or trust (excluding payments from escrow or trust accounts held by the transferee), the reporting person must report:
| Data Point | Details |
| Payment amount | The dollar amount of the payment |
| Payment method | Wire, ACH, check, cashier’s check, cryptocurrency, etc. |
| Financial institution and account number | Required only if the payment was made from a bank account. Refers to the buyer’s originating bank account (e.g., “Chase Bank, Acct #XXXX”)—not the payment platform. |
| Payor name | Required only if the payor is someone other than the transferee entity or trust |
The “account number” referenced in the rule is the buyer’s bank account—the account from which funds originated. It is not a reference to any processing account, token, or identifier used by Payload.
Where Does This Information Come From?
The reporting person collects the required payment information directly from the buyer or transferee entity/trust as part of the closing process. This is the same workflow used to collect the buyer’s tax identification number, date of birth, residential address, and beneficial ownership information for the same report. The originating bank account information is provided by the buyer, and it may also be visible on wire transfer confirmations or check copies.
The rule does not require—or contemplate—that payment processors provide this information. Payload is the conduit for funds, not the source of them.
Why Payload Cannot Share Full Account Numbers
Payload is bound by data security regulations that prohibit sharing full account numbers with third parties:
- PCI DSS requires masking of account data and limits display to the first six and last four digits
- Nacha Operating Rules restrict sharing of full account and routing numbers beyond what is necessary for transaction processing
- The Gramm-Leach-Bliley Act (GLBA) imposes restrictions on sharing nonpublic personal financial information
These protections exist to safeguard your clients’ financial data. Sharing full account numbers outside of these frameworks would expose both Payload and your organization to regulatory risk.
What Payload Provides to Support Your Reporting
Payload provides the following transaction data to support your FinCEN reporting workflow:
| Available from Payload | Description |
| Payment amount | Full transaction amount |
| Payment method | ACH, wire, or other method used |
| Payment date | Date the transaction was processed |
| Masked account reference | Last 4 digits of the originating account |
| Payor name | Name associated with the payment |
For the full account number and financial institution name, collect this directly from the buyer or transferee entity as part of your closing documentation.
Does the FinCEN Rule Affect Using Payload?
No. Using Payload to collect Earnest Money Deposits, cash-to-close payments, or any other real estate transaction payment does not create a compliance gap. Here’s how different transaction types are affected:
| Transaction Type | FinCEN Reporting? | Impact on Payload Use |
| Individual buyer, own name | No reporting required | None |
| Financed purchase (mortgage) | No reporting required | None |
| Non-financed, entity/trust buyer | Reporting required | None. Collect buyer’s account info at closing. |
| General legal payments (non-RE) | No reporting required | None |
Recommended Workflow
For reportable transfers, we recommend the following approach:
- At closing, collect the buyer’s originating bank account number and financial institution name directly from the buyer or their representative, alongside the other required FinCEN data (beneficial ownership, tax IDs, etc.).
- Use Payload’s transaction records (amount, method, date, masked account, payor name) to cross-reference and validate payment details for your Real Estate Report.
- File the Real Estate Report through FinCEN’s BSA E-Filing System using the combined data set.
Disclaimer: This guide is for informational purposes only and does not constitute legal or financial advice. For guidance on your specific situation, consult a licensed professional.