CTA

Started by MaryL20 • 9 replies • 162 views

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MaryL20 (California)
Posts: 5

Posted:

Our Property manager filled out the FinCEN form using his personal information and address only. He advised that board members do not need to do this. He said that because we have five board member positions (only four positions are filled now) that we do not have at least 25% of the ownership interests. I do not think he is correct. I think that all the board members need to put in their information. Is he correct? If he is not not does any one know how do the board members fix this?

JamesB37 (California)
Posts: 351

Posted:

https://youtu.be/eVzssoHcfGM?si=a0p5yLTgnv9IWIA9

TerriS6 (California)
Posts: 3,284

Posted:

Everything I've read says info of all directors is required. https://youtu.be/eVzssoHcfGM?si=V54tjjR6RiqV0YaR

TerriS6 (California)
Posts: 3,284

Posted:

Haha what timing.

JamesB37 (California)
Posts: 351

Posted:

ElleN (Idaho)
Posts: 1,333

Posted:

-- Ask the property manager if he has liability insurance.

-- Ask the property manager if he has passed the bar and so is an attorney. If he is not an attorney, ask him if he knows the law on accepting money for legal advice.

-- The property manager is wrong. Your question is well-covered on the internet.

KerryL1 (California)
Posts: 14,550

Posted:

Even certified Community mangers are not qualified to advise about such matters. You need the advice of your HOA. attorney. Time's running out.

JamesB37 (California)
Posts: 351

Posted:

Under the Corporate Transparency Act (CTA), a 'Beneficial Owner' is defined as any individual who, directly or indirectly, either:

1) Exercises substantial control over a reporting company, or
2) Owns or controls at least 25% of the ownership interests of a reporting company

https://www.berliner.com/articles/the-corporate-transparency-act-cta

https://www.fincen.gov/beneficial-ownership-information-reporting-rule-fact-sheet

CathyA3 (Ohio)
Posts: 6,299

Posted:

If your association is incorporated, then the board needs to report their information (with a very few exceptions). Most community managers to not need to report their information since they don't fit the definition of "beneficial owner" (with a few exceptions).

So this manager has it completely backwards.

After this initial reporting of information, then any changes to the board's information (resignations, new elections/appointments, changes to individual directors info such as a renewed driver's license) must be reported within 30 days of the change.

Link to the government's reporting website: https://boiefiling.fincen.gov/

The site has drop down info to help you through filing, but I recommend watching some videos covering the topic first so that you know what to expect.

MarshallT (New York)
Posts: 414

Posted:

This sounds wrong to me. The manager is not doing the board any favors, even if he thinks he is. I would talk to an attorney, but if the report has already been submitted, perhaps you need to file an "update" and include all active board members.

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