Corporate Transparency Act: Reporting Requirements Null

By Attorney Lindsey Wrubel

As some of you may recall, back in 2024, Congress enacted the Corporate Transparency Act, which required that all US corporations, whether not-for-profit, for-profit, or any other type of entity, that have beneficial owners of that particular corporation must register with the Financial Crimes Enforcement Network.

Many board members from your respective associations registered accordingly at the time, and there have been questions as to whether it is still necessary to register your board members as beneficial owners. 

There was substantial litigation back-and-forth as to whether the mandate could be enforced by the Financial Crimes Enforcement Network (FINCEN); however, what ultimately happened was that, effective August 11, 2026, the Department of the Treasury eliminated the need for owners who serve as board members to register with FINCEN under the Corporate Transparency Act. As of today, this requirement only applies to foreign corporations, which none of your associations are.

Q&A:

Q:  If I registered previously with FINCEN, do I need to update my information when I am no longer a board member?

A: No, the situation is that the existing registration will essentially be held in records, and we do not need to update any status or file any annual reports.

Q: Do you foresee this becoming a requirement for registration in the future?

A: No, at this point, our industry has viewed this as essentially a failed attempt by the legislature to prevent money laundering, which was never really applicable to any of your condominium or homeowners association boards. The checks and balances in place for the associations’ finances are often flagged through bank activity. Even then, this is such a rarity that it seldom happens. Most condominium and homeowners association boards in Ohio do not have liquid funds available to hide any type of money laundering. As of today, there is no need to update the FINCEN filings.

Regarding non-community association corporations or entities, this provision may still apply depending upon the situation, as the Department of the Treasury cannot repeal the CTA absent Congressional approval. 

Q: Does this mean that my information is on file with the federal government? Even though we do not need to update our information or have information on file any longer?

A:  Yes, this information has already been transmitted to the Financial Crimes Network, which is a division of the federal government. Specifically, these records were submitted electronically. If you registered for FINCEN through our office, that database is no longer accessible, nor can our office access it.