Corporate Transparency Act
Corporate Transparency Act and FinCEN Beneficial Ownership Memo
Dear Board of Directors,
As we have communicated several times this fall, a new federal law affects your community or homeowner’s association (HOA) and compliance with that law is now required.
This federal law requires certain corporations (including yours), limited liability companies (LLCs), and other similar entities to report detailed information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). The CTA claims to enhance transparency and combat illicit activities like money laundering and fraud. Compliance is mandatory, and non-compliance can result in potentially significant penalties.
Your community is currently subject to the CTA beneficial owner registration requirements. The Community Association Institute (CAI), our industry trade group, attempted to seek an exemption for homeowner associations from these requirements but was not successful.
Fifth Circuit Court Overturns Corporate Transparency Act Injunction
Filing Deadline: The original filing deadline of 12/31/2024 has been reinstated. Your community is once again required to comply by the deadline.
FinCEN Filing: We can assist in compliance. Our process makes filing and tracking filing status easy.
Ongoing Compliance: Any changes in beneficial ownership information must be reported within 30 days of the change. Our process can help remind beneficial owners when changes require updated reporting.
Penalties: Willful failure to report complete or updated information could result in civil penalties of $500 per day and criminal penalties of up to $10,000, and up to 24 months in prison for beneficial owners.
How We Can Help
All Board members and associations must register with FinCEN before 12/31/2024.
Mountain Valley has prepared a contract addendum for your association if it needs our help. The fee for our assistance with this process will be $1,000 per year. Please contact your manager by replying to this email or emailing our Customer Support Team at info@mvpmvail.com.
We will require either a signed contract addendum engaging Mountain Valley to help or a signed opt-out form clarifying that Mountain Valley will not assist in compliance.
Our help is not required to complete this process, but we understand this can be confusing and convoluted. Associations can choose to meet the compliance requirements on their own. If your association chooses to navigate this process without our help, we will send a separate agreement acknowledging this.
If you have further questions, please reach out to us.