The U.S. government’s back-and-forth regarding enforcement of the Corporate Transparency Act (“CTA”) continued this week, though it has issued a statement that offers community associations some finality on the issue. On March 2, 2025, the U.S. Department of Treasury, which oversees the Financial Crimes Enforcement Network (“FinCEN”), made a statement that offers a reprieve to the U.S. companies, including community associations (“Associations”). The statement included the following language:
“not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory guidelines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.”
To that end, BRK is recommending that its clients suspend any actions related to the CTA filings that it has either completed or is considering completing. This includes refraining from any initial filings (if your Association has not already done so) or, for those Associations that have already filed, refraining from updates or corrections to prior reports (whether based on board member changes or otherwise).
The Department of Treasury is expected, in the coming months, to update the rules related to the CTA filings to potentially limit applicability to only foreign reporting companies, which would exclude U.S. community associations, removing this burdensome requirement for not-for-profit community associations.
BRK will continue to monitor the situation and issue updates as they become available.