Corporate Transparency Act for Real Estate Borrowers and Lenders: New Federal Reporting Requirements

A live 90-minute premium CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Wednesday, March 2, 2022

1:00pm-2:30pm EST, 10:00am-11:30am PST

(Alert: Event date has changed from 1/11/2022!)

or call 1-800-926-7926

This CLE course will examine the Corporate Transparency Act (CTA) and its implications for real estate borrowers and lenders. The panel will discuss the new reporting requirements imposed on borrowers, how the CTA affects lenders and their AML procedures, and the policy considerations behind the law.

Description

The CTA establishes beneficial ownership disclosure and reporting requirements for any newly formed and existing corporation, LLC or partnership which files formation documents in any state. Real estate counsel must understand the disclosure and other requirements of the CTA, including what constitutes a "beneficial owner" and the entities to which it applies.

Any entity that has filed formation documents in any state is considered a "reporting company" for purposes of the CTA, subject to certain exemptions. Newly formed entities must submit a disclosure of its beneficial owners to FinCEN at the time of formation, and existing entities must file the disclosure within two years. A reporting company must also provide updated information to FinCEN within one year upon a change in beneficial ownership.

Failure to comply with the new CTA reporting requirements will result in serious penalties. Failure to meet the reporting standards may result in civil penalties of up to $500 per day, and any individual who willfully provides false or fraudulent information may face criminal fines up to $10,000 and/or imprisonment for up to two years.

The CTA adds a new layer of reporting and compliance requirements for lenders in real estate finance transactions. Lenders will need to reassess their AML protocols to better match the requirements of the CTA.

Listen as our authoritative panel discusses the CTA, the new federal reporting requirements it imposes on borrowers, and the added due diligence issues it presents for lenders.

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Outline

  1. Basics and policy goals of the Corporate Transparency Act
  2. Key definitions
    1. Reporting company: exemptions
    2. Beneficial owner
  3. Reporting requirements
    1. New entities
    2. Existing entities
    3. Information required
  4. Implications for real estate borrowers and lenders

Benefits

The panel will review these and other questions concerning the CTA:

  • What kinds of entities are deemed "reporting companies" and who is considered a "beneficial owner" under the CTA?
  • What are the filing requirements for a reporting company that has changed ownership?
  • What are the penalties for a borrower who fails to comply with the CTA?
  • How might the CTA affect a lender's AML policies and procedures in making real estate loans?

Faculty

Peurach, Matthew
Matthew R. Peurach

Partner
Morris Manning & Martin

Mr. Peurach’s practice focuses on structuring commercial real estate transactions, negotiating and drafting...  |  Read More

Weiner, Andrew
Andrew J. Weiner

Partner
Pillsbury Winthrop Shaw Pittman

Mr. Weiner’s practice is global in scope, with a significant and sustained concentration on transactions in the...  |  Read More

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You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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