The Corporate Transparency Act (CTA) aims to fight financial crime by creating a national database of beneficial ownership information. But what exactly does that mean?
The Breakdown:
- Beneficial owners—These are the individuals who ultimately control a company. Think behind-the-scenes decision-makers.
- The database—This secure system will store information on beneficial owners of many businesses, including some community associations.
- The goal—Increased transparency to help prevent money laundering, terrorist financing, and other illegal activites.
What you need to know:
- The deadline to report beneficial owners depends on your associaton’s formation date. Those formed before January 1, 2024 must file their report by January 1, 2025.
- The information required includes names, dates of birth, and addresses of beneficial owners.
- Alliant has partnered with FinCEN REPORT, a reporting company that will navigate the CTA reporting on your behalf.
For more information about The Corporate Transparency Act, please visit US Financial Crimes Enforcement Network.