The Corporate Transparency Act (CTA), enacted in 2021, was designed to enhance transparency and combat illicit financial activities by requiring certain entities to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). Initially, this mandate encompassed a broad range of entities, including many homeowner, cooperative and condominium associations structured as non-profit corporations in Florida.
Recent Developments:
As of March 26, 2025, FinCEN has issued an interim final rule that significantly narrows the scope of the CTA’s reporting requirements. Under this new rule, domestic entities and U.S. persons are exempt from reporting BOI. The reporting obligations now apply exclusively to foreign companies registered to do business in the United States. This means that U.S.-based homeowner, cooperative and condominium associations, including those in Florida, are no longer required to submit BOI reports to FinCEN.
Implications for Florida Community Associations:
- Reporting Exemption: Florida homeowner, cooperative and condominium associations that were previously preparing to comply with the CTA’s BOI reporting requirements are now exempt under the interim final rule.
- Ongoing Monitoring: While this exemption alleviates the immediate compliance burden, it is advisable for associations to stay informed about any future regulatory changes. FinCEN is accepting public comments on the interim rule until May 27, 2025, and may issue further guidance or adjustments based on feedback received.
- Consultation Recommended: Given the evolving nature of this regulation, associations should consult with legal counsel to ensure they remain compliant with any new requirements that may arise and to understand how these changes specifically impact their operations.
Disclaimer:
This post is for informational purposes only and does not constitute legal advice. For questions about the Corporate Transparency Act or any other legal matters related to community associations, please contact the offices of McCabe | Ronsman at www.flcalegal.com or call (904) 396-0090.