Corporate Transparency Act News

February 27, 2025 – FinCEN announced that it will not issue any fines or penalties or take any other enforcement actions against any companies based on any failure to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act by the current deadlines. Further, FinCEN will 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. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. 

This continues to be a developing matter, and we will continue to share updates as they arise. Should you have any questions regarding how the recent court decision specifically impact your association, we encourage you to consult with a legal professional.

Understanding the Corporate Transparency Act

The Corporate Transparency Act (CTA) is a new regulation requiring organizations in the United States to begin filing Beneficial Owner Information (BOI) with the Financial Crimes Enforcement Network (FinCEN) of the United States Treasury. The CTA was enacted in 2021 to combat money laundering and terrorism financing by requiring corporations, including community associations, to disclose BOI to FinCEN.

How to file Beneficial Ownership Information

Sentry Management has partnered with FincenFetch, an industry-leading BOI reporting software provider, to deliver a simplified solution for our board members to easily complete their reporting obligations.

Sentry’s easy-to-navigate reporting platform provides an accurate and highly secure experience that eliminates errors and minimizes the complexities of self-filing. Most importantly, the solution allows board members to enter their own personal identification information to keep the BOI confidential and secure and avoids sharing personal information over email or other unsecured channels.

Boards that choose to file independently or via a third-party can opt out of Sentry’s services with written notice and use FinCen’s online portal, the BOI E-Filing System.

Corporate Transparency Act Frequently Asked Questions

Are there any exemptions for community associations? 
Exemptions will rarely apply to community associations. A list of exemptions is available here. Tax-exempt non-profits, specifically under section 501(c)(4), are exempt. Most community associations do not have this status.  Also, unincorporated condominium associations in some states may not be considered reporting companies under the CTA. We strongly advise that you review your responsibilities under the CTA and consult with your legal counsel if you have any questions or concerns.

Who is considered a Beneficial Owner?
A “beneficial owner” is an individual who directly or indirectly controls a legal entity, which includes those who control 25% or more of the company’s ownership interests, or someone who exerts “substantial control” over the reporting entity. Board members for community associations are generally considered to exert “substantial control” over the community as a legal entity.

How do community associations comply?  
As a registered corporation, community associations are required to comply with the CTA by filing a beneficial ownership report with FinCEN. Sentry Management has partnered with FincenFetch to provide a simple and secure web-based platform to fulfill this requirement.

What information needs to be provided?
Associations must report association entity details such as legal name, state of formation, DBAs (doing business as), tax ID, and address. The required information for a BOI report includes:

1. Your legal name
2. Your birthdate
3. Your home address
4. A copy of, and an identifying number from, a driver’s license, state ID, or passport and/or their unique FinCEN identifier

When is an update required? 
Common triggers for association updates include the addition or removal of board members, changes to a board member’s identification number or address, and updates to community information. All associations have only 30 days to file an updated report after a change in BOI.

What is a FinCEN identifier?
A FinCEN identifier is a unique identifying number issued to an individual by FinCEN. It can be used in place of that individual’s otherwise required personal information on a BOI report. Reporting companies can provide this unique ID number instead of the individual’s personal details. FinCEN identifiers can be obtained by completing the electronic webform at https://fincenid.fincen.gov/.

What are the penalties for non-compliance? 
The U.S. Department of the Treasury will enforce penalties for noncompliance, which could include imprisonment and/or fines up to $10,000.

What if our association is new or was formed in 2024? 
Associations formed in 2024 have 90 days from their formation date to file. Associations formed in 2025 and beyond will only have 30 days.

How can our association make this reporting mandatory for board members? 
This is a regulatory mandate for board members. Thus, registration is not considered optional under the federal regulations. As an additional step, the Board of Directors and its members may choose, at their sole discretion, to adopt a mandatory compliance resolution concerning registration with FinCEN. Please consult legal counsel for specific guidance based on your association’s governing documents.

Board members are providing information to the government. Can anyone access my information through a Freedom of Information Request (FOIA)?
No. Under the CTA, access to the beneficial ownership information reported to FinCEN is restricted to ensure privacy while enabling effective enforcement of the law. The CTA includes strict confidentiality provisions to protect the privacy and security of the reported BOI, limiting its use to authorized purposes and ensuring it is not publicly disclosed. The information can only be accessed by:

• Federal Law Enforcement Agencies: Authorized federal agencies, including the Department of Justice (DOJ) and other law enforcement entities, for use in investigations and enforcement actions related to money laundering, terrorism financing, tax evasion, and other financial crimes.
• State, Local, and Tribal Law Enforcement Agencies: These agencies can request access to the information through a court order for an investigation or enforcement action related to criminal or civil violations.
• Foreign Law Enforcement Agencies: Foreign agencies can request access through a U.S. federal agency, under certain conditions and as part of international cooperation agreements, particularly in cases involving cross-border criminal activities.
• Federal Functional Regulators: Federal functional regulators, such as the Securities and Exchange Commission (SEC) and other relevant regulatory bodies, can access the information for regulatory purposes.
• Financial Institutions: Financial institutions can access the information to comply with their customer due diligence (CDD) requirements, provided they obtain consent from the entity whose information is being requested.

Additional Resources and Useful Links

A list of additional FAQs relating to FinCEN can be found here.

For information on FincenFetch, visit the FincenFetch Compliance Guide.

To connect with Community Associations Institute (CAI) and learn more about their industry services for board members, visit their About page.

To learn more about CAI’s industry advocacy efforts and lawsuits related to the CTA, please visit the Community Associations Institutes’ Advocacy Center

Send a message here and voice to Congress to exempt community associations from the CTA.

View your community or board member profile and personal information by visiting Sentry Management’s CommunityPro portal here.

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Note: The content on this page should not be interpreted as legal advice. It does not cover every aspect of the above-referenced legislation and is designed to be a general resource overview. The information contained herein is not intended to serve as a substitute for professional legal advice.