31 C.F.R. Part 1031 Compliance for Title Companies & Settlement Agents
The real estate GTOs ended February 28, 2026. The nationwide rule that followed was vacated on March 19, 2026, and is on appeal, so no reports are required today. Here's what the rule would have required and what to do in the meantime.
Mar 1, 2026
Effective date
Permanent
No renewal required
Nationwide
No geographic limit
Voluntary SAR
New obligation
Rule vacated by federal court (March 19, 2026 - Flowers Title Companies v. Bessent, E.D. Tex.):
Reporting persons are not currently required to file real estate reports with FinCEN while the court order remains in force. Monitor FinCEN's official rule page for updates.
Get Expert GuidanceThe Shift from GTOs to 31 C.F.R. Part 1031 Is Structural, Not Just a Renewal
For 14 years, FinCEN relied on temporary 180-day Geographic Targeting Orders to gather intelligence on cash real estate purchases. Phase 20 - the final GTO - ran October 10, 2025 through February 28, 2026 as a bridge to the permanent rule.
On March 1, 2026, 31 C.F.R. Part 1031 was set to take effect. It is not a GTO. It is a permanent federal regulation under the Bank Secrecy Act that applies automatically - no renewal, no expiration, no geographic carve-outs, no minimum dollar threshold. However, on March 19, 2026, the U.S. District Court for the Eastern District of Texas vacated the rule in Flowers Title Companies v. Bessent.
GTOs: Temporary, 180-day max, 20 renewals over 14 years
Part 1031: Permanent, nationwide, no renewal ever needed
GTOs: No SAR filing, no written AML program required
Part 1031: Voluntary SAR filing + expanded entity coverage
GTOs: Title insurance companies only
Part 1031: Title companies AND non-title settlement agents
Effective
March 1, 2026
Coverage
All 50 States + DC
Expires
Never
SAR Filing
Voluntary - new in Part 1031
Two Major Requirements That Did Not Exist Under GTOs
These are not enhancements to the GTO framework - they are entirely new obligations that require building new infrastructure before conducting covered transactions.
Voluntary SAR Filing
You may file Suspicious Activity Reports voluntarily; there is no SAR filing requirement for title and settlement companies (FinCEN FAQ L.4/L.5). If you choose to file, best practice is within 30 days of detecting suspicious activity. GTOs had no SAR requirement whatsoever - only a Currency Transaction Report. This requires registering on FinCEN's BSA E-Filing portal, building a SAR decision tree, and training staff on real estate red flags.
- 30-day filing window (voluntary)
- Tipping-off prohibition applies
- Register at bsaefiling.fincen.treas.gov
Broader Entity Coverage
Under GTOs, only title insurance companies were directly covered. The vacated rule would have extended obligations to non-title settlement agents - escrow officers, attorneys, and others conducting closings without issuing title insurance. It is not in force.
- Escrow officers now covered
- Closing attorneys now covered
- Non-title agents now covered
Note on AML Program Requirements: The RRE reporting rule (31 C.F.R. Part 1031) does not require a written AML program, compliance officer, employee training, or independent audit. Per FinCEN FAQ I.11, the rule explicitly exempts title companies from AML program requirements. We have found no current FinCEN proposal for those requirements.
Key Differences: GTO Framework vs. 31 C.F.R. Part 1031
Side-by-side breakdown across every material dimension. Rows highlighted in teal represent the most significant new obligations for your compliance program.
| Dimension | GTO Framework (2012–2026) | 31 C.F.R. Part 1031 (Mar 1, 2026+) |
|---|---|---|
Legal Authority Basis for obligation | Temporary administrative order under 31 U.S.C. § 5326. Expires automatically; each order must cite a specific money laundering concern. | Permanent federal regulation codified at 31 C.F.R. Part 1031 under the BSA (31 U.S.C. § 5318). No expiration; superseded only by subsequent rulemaking. Vacated March 19, 2026 (Flowers Title Companies v. Bessent, E.D. Tex.). |
Geographic Scope Coverage area | Metro-specific at launch; nationwide only from Phase 17 (Aug 2022). Coverage explicitly defined per order. | Nationwide from day one - all U.S. counties and territories. No geographic carve-outs. |
Covered Entities Who must report | Title insurance companies issuing a title insurance policy only. Escrow agents and attorneys handling closings without title insurance were not directly covered. | Title insurance companies AND non-title settlement agents (escrow officers, attorneys, etc.). Broader entity class. |
Renewal Required Duration | Max 180 days per order. FinCEN had to renew every 6 months - 20 renewals over 14 years. | No renewal required. Permanent and self-executing. No expiration. |
SAR Obligations Suspicious Activity Reports | No SAR filing requirement. Only Currency Transaction Report filing and beneficial ownership collection. | Voluntary SAR program - detect, evaluate, and document. No SAR filing requirement applies to title and settlement companies (FinCEN FAQ L.4/L.5); if you choose to file, best practice is within 30 days. |
AML Program Written policies & procedures | No written AML program required. No compliance officer designation. No training mandate. | The RRE reporting rule does NOT require a written AML program, compliance officer, training, or audit. We have found no current FinCEN proposal for those requirements. |
Beneficial Ownership Identification scope | Individuals owning 25%+ of the purchasing legal entity. Government ID verification. | Individuals owning 25%+ PLUS the controlling manager/officer of the purchasing entity. Aligned with expanded BSA CDD rule. |
Reporting Threshold Dollar minimum | $300,000 (Phases 17–20 nationwide). Earlier phases varied by metro ($300K–$3M). | No fixed threshold in the permanent rule as published. Applies to all covered non-financed transfers. |
Recordkeeping Retention & location | 5-year retention from transaction date. Available to FinCEN and law enforcement on request. | 5-year retention maintained. Records must be kept at the covered business's principal place of operations. |
Enforcement Penalty authority | Civil penalties under 31 U.S.C. 5321 (up to $286,184 per willful violation). Criminal prosecution for willful non-compliance. | Full BSA civil and criminal penalty framework. Willful violations can also be prosecuted criminally: up to $250,000 and five years in prison, or up to $500,000 and ten years in aggravated cases (31 U.S.C. 5322). Broader enforcement authority. |
Legal Authority
Basis for obligation
Temporary administrative order under 31 U.S.C. § 5326. Expires automatically; each order must cite a specific money laundering concern.
Permanent federal regulation codified at 31 C.F.R. Part 1031 under the BSA (31 U.S.C. § 5318). No expiration; superseded only by subsequent rulemaking. Vacated March 19, 2026 (Flowers Title Companies v. Bessent, E.D. Tex.).
Geographic Scope
Coverage area
Metro-specific at launch; nationwide only from Phase 17 (Aug 2022). Coverage explicitly defined per order.
Nationwide from day one - all U.S. counties and territories. No geographic carve-outs.
Covered Entities
Who must report
Title insurance companies issuing a title insurance policy only. Escrow agents and attorneys handling closings without title insurance were not directly covered.
Title insurance companies AND non-title settlement agents (escrow officers, attorneys, etc.). Broader entity class.
Renewal Required
Duration
Max 180 days per order. FinCEN had to renew every 6 months - 20 renewals over 14 years.
No renewal required. Permanent and self-executing. No expiration.
SAR Obligations
Suspicious Activity Reports
No SAR filing requirement. Only Currency Transaction Report filing and beneficial ownership collection.
Voluntary SAR program - detect, evaluate, and document. No SAR filing requirement applies to title and settlement companies (FinCEN FAQ L.4/L.5); if you choose to file, best practice is within 30 days.
AML Program
Written policies & procedures
No written AML program required. No compliance officer designation. No training mandate.
The RRE reporting rule does NOT require a written AML program, compliance officer, training, or audit. We have found no current FinCEN proposal for those requirements.
Beneficial Ownership
Identification scope
Individuals owning 25%+ of the purchasing legal entity. Government ID verification.
Individuals owning 25%+ PLUS the controlling manager/officer of the purchasing entity. Aligned with expanded BSA CDD rule.
Reporting Threshold
Dollar minimum
$300,000 (Phases 17–20 nationwide). Earlier phases varied by metro ($300K–$3M).
No fixed threshold in the permanent rule as published. Applies to all covered non-financed transfers.
Recordkeeping
Retention & location
5-year retention from transaction date. Available to FinCEN and law enforcement on request.
5-year retention maintained. Records must be kept at the covered business's principal place of operations.
Enforcement
Penalty authority
Civil penalties under 31 U.S.C. 5321 (up to $286,184 per willful violation). Criminal prosecution for willful non-compliance.
Full BSA civil and criminal penalty framework. Willful violations can also be prosecuted criminally: up to $250,000 and five years in prison, or up to $500,000 and ten years in aggravated cases (31 U.S.C. 5322). Broader enforcement authority.
Bottom line for compliance teams: Part 1031 would have been a structural change, not a renewal, adding expanded entity coverage that did not exist under the GTO regime. The RRE reporting rule does NOT require a written AML program, compliance officer, training, or audit, and we have found no current FinCEN proposal for those requirements. The rule was vacated March 19, 2026 (Flowers Title Companies v. Bessent, E.D. Tex.) - monitor FinCEN.gov/rre for reinstatement updates.
31 C.F.R. Part 1031 Compliance Checklist
An interactive action checklist for title companies and settlement agents. Click items to track your progress - and expand any item for implementation detail.
Draft or update a written AML/CFT Policy & Procedures manual
Designate a qualified AML Compliance Officer
Schedule an independent testing / audit function
Build ongoing employee training program
Voluntary SAR Analysis Tool
No SAR filing requirement - voluntary filing permitted
Answer 8 yes/no questions to analyze whether a transaction warrants voluntary SAR consideration. Title and settlement companies have no SAR filing requirement (FinCEN FAQ L.4/L.5). Covers beneficial ownership gaps, cash-equivalent payments, high-risk jurisdictions, and 25+ real estate red flags.
Quick Reference
Effective Date
March 1, 2026
Regulatory Citation
31 C.F.R. Part 1031
SAR Filing
Voluntary (30-day window)
Recordkeeping
5 years from transaction
SAR E-Filing
BSA E-Filing Portal
Official Resources
Related Compliance Guides
Track Active GTOs
See all current FinCEN orders - including the Southwest Border MSB GTO and Minnesota Fraud GTO still active in 2026.
Open GTO Map31 C.F.R. Part 1031 Questions Answered
Answers to the most common questions from title companies and settlement agents navigating the end of the GTOs and the vacated rule.
The answers below are for informational purposes only and do not constitute legal advice. Consult a qualified BSA/AML compliance professional for guidance specific to your business. Always verify current requirements with the official FinCEN rule page.
FinCEN 31 C.F.R. Part 1031 - effective March 1, 2026 (Vacated March 19, 2026)
Everything Your Title Company Needs to Know About 31 C.F.R. Part 1031
Soflo Consulting builds core, FinCEN-aligned AML/CFT programs for title companies and settlement agents - built around current duties and ready to adjust if the vacated rule returns.
Written AML/CFT Policy Manual
Custom-drafted for your entity type. Covers voluntary SAR analysis criteria, beneficial ownership procedures, Form 8300 continuity, and 31 C.F.R. Part 1031 requirements.
Compliance Officer Setup
Designation letter, job description, authority framework, and an escalation workflow for voluntary SAR analysis decisions.
Staff Training on Voluntary SAR Red Flags
Role-specific training covering real estate money laundering patterns, voluntary SAR analysis, uncooperative buyer protocols, and BSA E-Filing registration.
Independent Program Review
Annual audit of your AML program against BSA requirements, with a written findings report for regulatory examination readiness.
Built for Title Companies Nationwide
31 C.F.R. Part 1031 Ready Programs
Not Sure Where You Stand Under 31 C.F.R. Part 1031?
Talk to a compliance professional at Soflo. We'll assess your current program, identify gaps against current duties and voluntary good practice, and give you a clear roadmap - no commitment required.
Voluntary SAR analysis readiness review
AML program gap analysis against BSA requirements
Compliance officer designation support
BSA E-Filing registration walkthrough
Training program setup for title staff
“Soflo walked us through the entire transition from our GTO checklist to a full Part 1031-compliant program. We had SAR capability and a written policy in place before March 1st.”
Compliance Officer, Regional Title Company
Compliance Support Request
31 C.F.R. Part 1031 compliance for title companies & settlement agents.
Related compliance resources for title companies and settlement agents
Get Your Title Company Part 1031-Ready Today
Soflo delivers written AML programs, voluntary SAR analysis infrastructure, compliance officer support, and staff training. We do not perform independent audits or testing.