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WHAT'S THE CORPORATE
TRANSPARENCY ACT?
The Corporate Transparency Act is a law enacted by Congress in 2024 as part
of the Anti-Money Laundering Act of 2021. Administered by the Financial Crimes
Enforcement Network (FinCEN), the law aims to increase governmental awareness
of who owns and operates businesses, including homeowners' associations, in
the United States. To help combat money laundering, financial fraud, and terrorism
financing, this law is designed to prevent the masking of ownership through shell
companies or other legal means.
While the CTA wasn't intended to target community associations, HOAs are
subject to its requirements since many are businesses that have filed Articles of
Incorporation with a secretary of state. The government wants to better understand
who owns or is the decision maker of businesses nationwide. Seek advice from an
association attorney to understand your community's legal requirements.
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