In 2025, the Financial Crimes Enforcement Network (“FinCen”) issued a temporary rule with respect to the Corporate Transparency Act (“CTA”) pausing the requirement for U.S. companies and persons to submit beneficial ownership information (“BOI”) to FinCen. The rule was intended to serve as a temporary interim rule until a permanent rule was adopted. To date, however, we do not have a permanent rule.
At the time the temporary rule was adopted, the HOA industry breathed a sigh of relief and tried to forget the entire ordeal. Nevertheless, the CTA still constitutes an official federal law whose enforcement has merely been paused.
During the time the CTA was active, a great deal of personal data was collected by FinCen from individual board members in accordance with the BOI registration requirements. Such information included but was not limited to copies of individuals’ driver’s licenses, addresses, and birthdays.
The personal data collected by FinCen is still stored in its database, which makes many individuals very uncomfortable. Since 2025, efforts have been made to determine what will happen with the CTA and the stored personal information of thousands of individuals, but to date, a resolution has not been reached.
Nevertheless, there is a light at the end of this tunnel. A federal bill, HR 425, has been introduced, and is moving through the federal legislative process, that would repeal the CTA in full, as well as require FinCen to delete all data from BOI filings for individuals and entities within 90 days of the bill’s adoption.
Most recently, the bill was approved by the House Financial Services Committee and was sent to the floor of the House of Representatives for consideration. Should HR 425 become law, it would constitute a permanent and complete resolution to the CTA matter.
CAI is urging individuals to contact their representatives as soon as possible to support HR 425 and its adoption.
For more information concerning status of the CTA and personal information being stored in the FinCen database, please contact an Altitude attorney at 303.432.9999 or at [email protected].