Beneficial Ownership & the Corporate Transparency Act

A beneficial owner refers to an individual who owns at least 25% of a company or enough to exert significant control over it. Beginning in January 2024, the Corporate Transparency Act (CTA) will require businesses to disclose information on their beneficial owners under regulations issued by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The CTA aims to prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity.

Position

Due to the far-reaching scope of the CTA, The Roundtable is concerned about the regulatory burden and cost it would impose on many commercial and residential real estate investment businesses. 

While the CTA and its implementing regulations do not specifically target real estate businesses, it will directly impact the industry.

Background

FinCEN estimates that the CTA will affect over 32 million entities, imposing significant new compliance burdens on beneficial owners for the first time. Historically, few jurisdictions in the U.S.  mandate the collection of beneficial ownership information of corporate entities.

Additional legislation under consideration would impose anti-money laundering compliance obligations—similar to what banks face—on so-called “gatekeepers” such as law firms, investment advisers, accounting firms, and other professional service providers not currently subject to these onerous obligations.

For more information and recent updates, reference our resources below.

Resources
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Roundtable Weekly
Corporate Transparency Act Enforcement Blocked by Federal Court
December 6, 2024
Policy Comment Letter
The Roundtable and Coalition Urge Congress to Delay CTA Compliance Deadline, Support H.R.9278
September 3, 2024
RER Policy Priorities
Capital & Credit – June 2024 Policy Priorities
June 14, 2024
Roundtable Weekly
Real Estate Organizations Urge Congress to Delay Filing Deadlines of the Corporate Transparency Act (CTA)
June 7, 2024
Policy Comment Letter
RE Coalition Letter Supporting the Protect Small Business and Prevent Illicit Financial Activity Act (S.3625)
June 4, 2024
Roundtable Weekly
Roundtable and More Than 100 Business Organizations Support Legislation to Repeal the Corporate Transparency Act
May 10, 2024
Policy Comment Letter
Roundtable Supports Legislation to Repeal the Corporate Transparency Act (CTA)
April 29, 2024
RER Policy Priorities
Capital & Credit – Spring 2024 Policy Priorities
April 12, 2024
Roundtable Weekly
Business Coalition Urges Congress to Delay Implementation of Beneficial Ownership Rules
March 22, 2024
Policy Comment Letter
Roundtable and Business Coalition Urge Congress to Delay Implementation of Beneficial Ownership Rules
March 20, 2024
Roundtable Weekly
Treasury Collection of Beneficial Ownership Information is Ruled Unconstitutional by Federal District Court Judge
March 8, 2024
Roundtable Weekly
Roundtable and Industry Coalition Urge Treasury to Delay January Implementation of Beneficial Ownership Rules
October 20, 2023
Policy Comment Letter
Real Estate Industry Coalition Letter Requesting Implementation Delay of Beneficial Ownership Rules
October 19, 2023
Roundtable Weekly
Roundtable and Broad Coalition Support Legislation to Delay CTA Reporting Requirements
September 15, 2023
Policy Comment Letter
Joint Trades Letter Requesting Delay in Corporate Transparency Act's Reporting Requirements
September 12, 2023
Roundtable Weekly
Policymakers Urge Treasury to Amend Proposed Beneficial Ownership Rule
April 7, 2023
Roundtable Weekly
Treasury Issues Proposed Beneficial Ownership Regulations on Info Retention and Disclosure
December 23, 2022
Policy Comment Letter
Coalition Statement of Support for Legal Challenge to Constitutionality of the Corporate Transparency Act (CTA)
December 7, 2022
Roundtable Weekly
Treasury Issues Final Rule Requiring Disclosure of “Beneficial Owners”
September 30, 2022
Policy Comment Letter
Joint CRE Organizations Submit Comments to FinCEN on Proposed Beneficial Ownership Regulations
February 21, 2022
Policy Comment Letter
Roundtable and 4 Industry Associations Comment to FinCEN on Beneficial Ownership Information Reporting Requirements
February 4, 2022
Policy Comment Letter
Joint Real Estate Trade Association Letter to Congress on Corporate Transparency Bills
November 7, 2019
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Beneficial Ownership & the Corporate Transparency Act

A beneficial owner refers to an individual who owns at least 25% of a company or enough to exert significant control over it. Beginning in January 2024, the Corporate Transparency Act (CTA) will require businesses to disclose information on their beneficial owners under regulations issued by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The CTA aims to prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity.

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