economy
Fight money laundering without punishing small businesses
With National Small Business Week underway, Washington has a timely opportunity to show it understands what small businesses actually need. Too often, policymakers say they support Main Street while overlooking what new compliance demands look like for the local companies serving their communities.
TL;DR
- FinCEN's residential real estate reporting rule, aimed at stopping money laundering, is negatively impacting small businesses, particularly title companies.
- A survey found that 66% of transactions were delayed, and 85% of buyers/sellers raised privacy concerns due to the new rule.
- Small title companies are burdened with collecting data, explaining the rule, training staff, and determining transaction coverage.
- The American Land Title Association (ALTA) suggests modifications, including focusing on high-value transactions and reducing unnecessary data collection.
- A federal court has paused the rule, providing an opportunity for FinCEN to address industry and consumer concerns.