In a pivotal move to enhance corporate transparency and combat financial crimes, the U.S. Congress passed the Corporate Transparency Act (CTA) as part of the Anti-Money Laundering Act of 2020, tasking the Financial Crimes Enforcement Network (FinCEN) with its implementation. This legislation represents a significant shift in corporate reporting and oversight, designed to shed light on the complex structures of corporate entities. The CTA aims to deter and detect financial crimes, bolster the integrity of the U.S. financial system, and contribute to the global fight against illicit financial activities.

However, it poses potential challenges for volunteer association board members in private residential communities, who must now provide personal information to FinCEN. The CTA, integral to the Anti-Money Laundering Act of 2020, seeks to thwart the misuse of corporate entities for illegal activities like money laundering, fraud, and terrorism financing. It mandates that certain corporations, limited liability companies (LLCs), and similar entities disclose key information about their beneficial owners to FinCEN, potentially affecting board members and their management companies.