Statements

U.S. District Court Ruling Re-Opens Housing Market to Distortions from Corrupt and Criminal Cash

03/20/2026

Lower Court Decision Strikes Down Anti-Money Laundering Rules for the U.S. Real Estate Market

A statement from Transparency International U.S.
March 20, 2026

Washington, D.C. – Yesterday, a judge for the U.S. District Court for the Eastern District of Texas issued a nationwide injunction against a rule to curb money laundering through the U.S. real estate market. The case was brought by Flowers Title Companies, a Texas-based entity.

The rule, finalized by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) in 2024 and implemented in 2026, requires certain real estate professionals to report information to FinCEN about all-cash residential real estate purchases involving a corporate entity. The judge held that the rule exceeded the agency’s authority under the Bank Secrecy Act.

Gary Kalman, Executive Director of Transparency International U.S. (TI US), issued the following statement upon learning of the ruling:

This ill-conceived opinion not only breaks from decades of accepted law, if left in place, it would once again open our housing market to a flood of dirty money from drug cartels, corrupt foreign officials, transnational criminal organizations, and other illicit actors. Reintroducing that vulnerability means reintroducing distortions to our housing market and serious risks to public safety and national security.

Efforts to follow the money behind financial crime reflect a longstanding bipartisan consensus. This rule, developed under the previous administration and implemented by the current administration, is a clear example of that continuity.

Protecting the integrity of our housing market and enforcing laws to hold money-launderers accountable are not controversial topics.  This ruling should be overturned on appeal.

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TI US is part of the world’s largest coalition against corruption. In collaboration with national chapters in more than 100 countries, we are leading the fight to turn our vision of a world free from corruption into reality.

Related Resources

  • Readthe opinion by the U.S. District Court for the Eastern District of Texas.
  • ReadTI US’s comment to Treasury on the U.S. residential real estate rule.
  • Readthe TI US report “A Welcome Mat for Corruption,” analyzing how the U.S. stands out among multiple peer nations for failing to apply basic anti-money laundering safeguards to residential real estate transactions.

Media Contact
Victoria Brusa, Communications and Media, Transparency International U.S.
Phone: +1 771 250-8065 // +54 9 3492 652098 (WhatsApp)
Email: vbrusa@us.transparency.org
X: @TransparencyUSA