As of March 26, 2025, the Department of the Treasury, Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule that exempts all U.S.-based entities, including condominium and homeowners associations (HOAs), from the requirement to report beneficial ownership information (BOI) under the Corporate Transparency Act (CTA).
The FinCEN homepage contains the following notice:
ALERT [Updated March 26, 2025]: All entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners are now exempt from the requirement to report beneficial ownership information to FinCEN…. For more information, see press release and alert.
As noted in our prior Transparency Act Update, this interim final rule was expected when FinCen extended the BOI Reporting Requirements to March 21, 2025.
Key Highlights for Community Associations
1. Exemption for U.S. Entities
FinCEN’s revised definition of “reporting company” now includes only entities formed under foreign law and registered to do business in the U.S. Consequently, domestic entities such as condominiums and HOAs are no longer obligated to submit BOI reports.
2. Relief for Board Members and Officers
Previously, board members and officers of community associations were considered beneficial owners due to their substantial control over the entity, necessitating the submission of personal information to FinCEN. With the new exemption, these individuals are relieved from such reporting requirements.
3. No Penalties for Non-Compliance
FinCEN has clarified that no penalties or fines will be imposed on domestic entities or their beneficial owners for failing to file BOI reports under the CTA.
For frequently asked questions regarding the term final rules, see Interim Final Rule: Questions and Answers.
Maryland & Washington DC
410-327-3800 | 202-670-6289 | 301-830-8315
Note: This article is for informational purposes only and does not constitute legal advice. Associations should consult with legal professionals for guidance specific to their circumstances.
