If you’re buying or selling a home, you might assume it’s a personal, private transaction — just you, your agent, and the closing attorney. But in certain cases, federal agencies like FinCEN, Homeland Security, and even the FBI are quietly watching the real estate market.

This isn’t a reason to panic, but it is worth understanding. Here’s how — and why — the government may be involved in your next transaction:

Anti-Money Laundering: FinCEN’s Role in Real Estate

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) monitors real estate deals in specific high-risk areas to crack down on money laundering through all-cash home purchases.

• These regulations apply in select cities through Geographic Targeting Orders (GTOs).
• They require title companies to report the beneficial ownership of entities buying real estate in cash over certain thresholds.
• As of 2024, targeted areas include New York, Miami, San Diego, Los Angeles, San Francisco, and Boston.

Read more on FinCEN’s official Geographic Targeting Orders

CFIUS and Foreign Buyers: National Security Meets Real Estate

The Committee on Foreign Investment in the United States (CFIUS) has expanded its oversight to include foreign real estate purchases near sensitive sites, like military bases and ports.

• Under the Foreign Investment Risk Review Modernization Act (FIRRMA), CFIUS can now review real estate deals — even when no company is being acquired.
• In 2023, the Air Force raised national security concerns after a Chinese firm purchased land near a base in North Dakota.

Learn how CFIUS reviews real estate deals under FIRRMA

Read CNBC’s coverage of the North Dakota land controversy

Immigration Status & Mortgage Oversight

Mortgage lenders are required to verify a borrower’s identity and legal status — and that can intersect with immigration records. While not a direct Homeland Security audit, your file could draw attention if:

• False immigration documents are used
• Fraud is suspected on the loan application
• You’re applying for a government-backed loan, like FHA or VA

See FHA loan requirements for non-citizens

FBI & IRS Involvement: When Real Estate Becomes a Red Flag

The FBI and IRS-Criminal Investigations (CI) monitor patterns that may suggest:

• Title fraud or forged documents
• “Straw buyer” schemes where someone falsely claims to be the primary buyer
• Real estate used to hide unreported income or launder money

These agencies don’t monitor every deal, but they do act when something doesn’t add up.

Review the FBI’s real estate fraud alerts

What This Means for You

Most buyers and sellers won’t hear from a federal agency during a transaction — but in today’s security-conscious landscape, transparency and legal compliance matter more than ever.

• Selling to a foreign investor? Disclose clearly and understand CFIUS boundaries.
• Buying in cash with a trust or LLC? Expect extra scrutiny in some cities.
• Applying for a mortgage? Make sure your documentation is accurate and legal.

As always, work with a reputable closing attorney and disclose honestly — it’s the best way to keep your deal (and your name) off anyone’s watchlist.