In today's regulatory landscape, compliance is not just a recommendation but a necessity. The Corporate Transparency Act (CTA) is a regulatory measure that has significant implications for Homeowners Association (HOA) board members across the United States. Enacted in 2021, the CTA aims to combat illicit activities such as fraud, money laundering, and terrorism funding by requiring small businesses, including HOAs, to file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN).

Understanding the Corporate Transparency Act

The Corporate Transparency Act mandates that (almost all) HOAs incorporated before 2024 must file their BOI reports by January 1, 2025, and file updates within 30 days of any change occurring. Associations formed after 2025 must file within 30 days of formation. Since going into effect on January 1, 2024, the CTA has been a contentious matter that continues to be a focus of the Community Association Institute’s Advocacy group. However, it's important to note that the act was a bipartisan bill that passed by a two-thirds vote in both the House and Senate and overrode a presidential veto, which underscores its legitimacy and the duty of associations to follow the law.  

The Compliance Challenge

Complying with the CTA can be time-consuming and can be a significant burden for board members. Navigating the official government portal is confusing, and the nature of community associations makes it more complicated. However, CAMS offers a solution that significantly reduces this burden, saving board members valuable time and effort. More importantly, it provides a sense of relief by offering convenience, expert support, data security, and continuity for the association, thereby reducing the stress associated with compliance.

CAMS Corporate Transparency & Beneficial Ownership Information Service: A Reassuring Solution for HOAs

CAMS offers a comprehensive CTA and BOI Compliance Administration Service designed to alleviate the burden on community association board members, saving valuable time and effort. With CAMS, your board can more efficiently meet the CTA requirements.

1. Seamless Integration with FinCEN: CAMS utilizes the FinCEN Fetch (FF) portal, a secure third-party service integrated via the System-to-System Application Programming Interface (API) option with Fincen.gov making it seamless and secure for board members to fulfill the CTA/FinCEN/BOI filing requirements. This ensures that your personal information is transmitted securely and accurately.

2. Direct and Secure Information Upload: Our CTA administrator will set up all the required information for the association, which is the FinCEN Reporting entity. Board members receive a link from FF to upload the required information directly and securely, minimizing the risk of data breaches.

3. Status Tracking and Reminders: Our CAMS CTA Administrator tracks the filing status in the FF portal, sends reminders, and files the information with FinCEN.gov upon completion, ensuring timely compliance.

4. Data Ownership: CAMS does not handle any personally sensitive information, and the association retains complete ownership of its data, enhancing security and privacy.

Benefits of Using CAMS' Services

Opting for CAMS' CTA and BOI Compliance Administration Service offers numerous advantages:

• Time-Saving and Hassle-Free: Board members can focus on their primary responsibilities in the limited time available while CAMS handles the compliance process, saving significant time and reducing stress. 
• Enhanced Data Security: All data is stored with encryption and redundancy in accordance with SOC2 standards, ensuring the highest level of data protection.
• Continuity for Volunteers: The FinCEN Fetch portal is used for reporting, information archiving, and secure data storage, providing continuity for future board members.
• Proactive Reminders: Reminders are sent before document expiration dates, ensuring ongoing compliance.

Comprehensive Admin Services for Ongoing Compliance

In addition to the initial report filing services, CAMS provides comprehensive administrative services to support compliance efforts:

• Use of the FF Portal: Secure access to the FF portal for ongoing compliance management.
• Encrypted Data Handling: Ensuring all data is handled securely throughout the process.
• Business Entity Filing Preparation: CAMS prepares the necessary filings for the association, ensuring accuracy and completeness.
• Timely BOI Filings Management: CAMS facilitates timely filings for each board member, preventing lapses in compliance.
• Reporting Capability: Providing detailed reports for transparency and record-keeping.

What Does the Filing Service Fee Include?

CAMS' filing service fee covers a range of essential services:

• Association Registration with FinCEN: This includes providing the legal name, tax ID, business address, and entity type.
• Reporting Information Archive and Data Storage: As the FinCEN portal does not allow for information lookup or provide evidence of compliance, CAMS ensures that all information is archived and stored securely.
• Board Member BOI Filing Support: Dedicated support for board members throughout the filing process.
• Annual Update Filing: One update filing per year to maintain compliance.

The Value of CAMS' Service

Choosing CAMS for your CTA and BOI filing needs provides unmatched value:

• Cost-Effective: Unlike other service providers who may charge higher fees without the same level of security, CAMS offers a cost-effective solution with robust security controls.
• Simplified Process: The CAMS/FF integration makes the filing process quick and easy, offering peace of mind to board members.
• Enhanced Transparency and Continuity: Facilitates transparency and ensures continuity for volunteer board members.
• Secure Integrations and Data Handling: Ensures all data is handled securely, protecting against potential breaches.
• Assistance with Reminders and Filings: CAMS' CTA administrator assists with reminders and helps boards file, ensuring ongoing compliance.

The Penalties for Non-Compliance

Non-compliance with the CTA can result in severe penalties, including fines exceeding $500 per day for civil penalties and fines up to $10,000, and up to two years of imprisonment for criminal penalties. These potential repercussions underscore the importance of timely and accurate compliance.

In conclusion, allowing CAMS to navigate the Corporate Transparency Act on your behalf is prudent for any community association. With CAMS' expertise, secure integrations, and comprehensive support, board members can easily ensure compliance and focus on their core responsibilities. Don't let compliance become a burden—partner with CAMS and achieve peace of mind today.

About Community Association Management Services

In business since 1991, CAMS is North and South Carolina’s premier community management company. With experienced local managers in each of its nine regions, CAMS provides innovative solutions to the community associations it serves. Additionally, CAMS was featured on Inc. Magazine’s 2022 Inc. 5000 list of the fastest-growing private companies in America. To learn more, visit www.camsmgt.com/choose-cams.