New York Real Estate Lawyers Blog
We have recently posted with respect to new Federal financial reporting requirements to certain real estate transactions. Given the broadly sweeping requirements of the regulations, it was practically inevitable that a legal challenge would arise. A few days ago, the U.S. District Court for the Eastern District of Texas in Flowers Title Companies, LLC v. Bessent found that the regulations should be vacated, as the requirements exceeded authorization under the Bank Secrecy Act. Further, the Court found that the regulations presumed that all transactions of a certain type were suspicious and resulted in too many transactions being subject to onerous reporting requirements. For the time being, if not indefinitely, compliance with the new regulations will not be required. Our attorneys will keep readers informed as to any further updates on this matter.