The Latest Update on the Corporate Transparency Act (CTA)
On October 24, 2024, a motion for a preliminary injunction to postpone the deadline for all community associations to comply with the requirements was denied. Please review the CAI FAQ form for the next steps and what you need to know to keep your association compliant.
What is the CTA?
The Corporate Transparency Act (CTA) aims to enhance corporate transparency and combat financial crime. For community associations, this law mandates reporting beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
What Does This Mean?
Associations must disclose individuals who own or control the entity, ensuring accountability and preventing illicit activities. While the CTA primarily targets corporations and limited liability companies, its implications for community associations are significant.
Compliance and Consequences
Noncompliance could result in civil penalties of $500 per day, criminal penalties of up to $10,000, and up to 24 months in prison for beneficial owners. Compliance fosters trust among residents and enhances community governance. Associations should stay informed about the reporting requirements and deadlines to ensure adherence and maintain transparency within their communities.
Please reach out to us with any further questions!
Best Regards,
Lindsay Heysler
Senior Business Development & Marketing Manager