Corporate Transparency Act

This Federal law was enacted in 2021 to curb illicit finance and now requires all corporations which were created or registered to do business in the United States to report information about the individuals who ultimately own or control them, including directors of community associations.
The first report must be filed by January 1, 2025 with the Financial Crimes Enforcement Network (FinCEN) of the Federal Government and must include the names, residential addresses, birthdates and a copy of valid IDs such as drivers licenses or passports of their Board members.
Failure to timely file the report could result in over a $500 per day fine, among other penalties.
A lawsuit was recently filed by the national Community Association Institute (CAI) against the United States Department of Treasury challenging the application of the filing requirements of the Corporate Transparency Act to community associations. While it may take a while to decide the case, there is an October 11, 2024 hearing date on a request for a preliminary injunction to delay the filing deadline of January 1st until the Court rules on the case. I will continue to monitor this case closely as a Fellow in the CAI College of Community Association Lawyers.