February 20, 2014

FinCEN sets AML, SAR rules for housing GSEs

Feb. 21, 2014 – A final rule to require Fannie Mae, Freddie Mac and the Federal Home Loan Banks to implement anti-money laundering programs and file suspicious activity reports were released Thursday by the Financial Crimes Enforcement Network.

The final rule requires the entities to file their SARs directly with FinCEN. Currently, they file less-detailed SARs with the Federal Housing Finance Agency. The final rules takes effect 60 days following its publication in the Federal Register; the compliance deadline is 180 days after publication.

FinCEN proposed this rule in 2011. "This will provide law enforcement and regulators with a more complete and timely national picture of suspected mortgage fraud and money laundering, as well as assist with investigations and prosecutions of significant mortgage fraud schemes," the network said in a statement.