PalmAgent has integrated FinCEN compliance features into its mobile platform ahead of the Financial Crimes Enforcement Network’s (FinCEN) Anti-Money Laundering (AML) rule taking effect on March 1. The update, now live in the Apple App Store and Google Play, is designed to help title companies and real estate agents identify the types of transactions that may trigger reporting requirements at the earliest stage of the deal — when closing cost estimates are first generated.
The FinCEN rule will require reporting on certain non-financed residential real property transfers involving legal entities or trusts. The rule broadly defines residential property and includes some vacant land and commercial properties, creating new data collection and reporting obligations for title and settlement companies. Among the most significant challenges facing the industry is the volume of documentation that must be gathered from buyers in reportable transactions — a process that can delay closings if not initiated early.
PalmAgent’s updated platform flags transactions that may be subject to FinCEN reporting requirements when estimates are generated through its mobile app. The compliance features are built into the same workflow that more than 550,000 active realtor accounts already use to run buyer and seller net sheet estimates, providing early identification of potentially reportable transactions before they reach the closing table. On the title company side, the system alerts the assigned sales representative and compliance team through PalmAgent’s activity dashboard.
The app also alerts the real estate agent when a transaction estimate triggers a potential FinCEN flag. This allows the agent to notify the buyer early in the process to begin collecting the documentation and information that will be required for FinCEN reporting, reducing the risk of delays at closing.
“As real estate’s No. 1 closing cost tool, we’re in a unique position because we sit between the real estate agent and the title company at the very beginning of a transaction,” PalmAgent CEO Jeremy Davis said in a release. “Most compliance tools focus on the title company’s workflow at or near closing. We’re able to flag a potential FinCEN obligation the moment an agent runs an estimate, which gives both the agent and the title company a significant head start on gathering the required information.”
“We’re not a compliance platform, and we’re not trying to replace the specialized tools that handle the actual FinCEN reporting,” Davis said. “But the biggest pain point we’re hearing from our clients is that they’re finding out a transaction requires reporting too late in the process. Alerting both the title company and the agent at the estimate stage solves that problem.”
The FinCEN compliance features are now live and available to all PalmAgent clients at no additional cost. Existing users will need to update the app through the Apple App Store or Google Play to access the new functionality. PalmAgent currently serves title companies in all 50 states through its white-labeled mobile platform.