An encore presentation with Live Q&A.
A 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will examine the Corporate Transparency Act (CTA), effective Jan. 1, 2024, and its impact on real estate entities and transactions, including who is considered a "reporting company" subject to new beneficial ownership information (BOI) reporting requirements and whether an exemption applies. The panel will also discuss certain state laws that impose similar reporting requirements as the CTA. Finally, the panel will describe best practices for real estate counsel to assist their clients with preparing for the CTA's implementation and ongoing compliance.
Description
Beginning Jan. 1, 2024, the CTA requires certain U.S. and foreign entities defined as "reporting companies" to report certain identifying information about themselves, their beneficial owners, and company applicants to FinCEN (the U.S. Dept. of the Treasury's Financial Crimes Enforcement Network) within a certain prescribed time period.
The CTA will likely impose a heavy burden on real estate businesses. Real estate is commonly owned by a special purpose entity (SPE) and ownership of the SPE is usually structured through a chain of additional entities. All of these may be considered reporting companies subject to the CTA's requirements unless they meet an exemption.
The CTA also adds a new layer of reporting requirements for lenders in real estate transactions who will need to reassess their AML protocols and real estate investors who will need to comply with the reporting requirements for their investment vehicles. Due diligence will become more complex.
Failure to comply with the new reporting requirements will result in serious civil and criminal penalties.
In addition to the CTA, real estate counsel should be aware of applicable state-level reporting requirements. Most notably, New York and Pennsylvania have enacted or are enacting laws with similar reporting requirements as the CTA and a California bill is under consideration.
Listen as our expert panel discusses the CTA's impact on real estate entities and transactions and how to determine whether exemptions apply. The panel will also address state laws with similar reporting requirements of which counsel should be aware. The panel will further describe best practices for compliance.
Outline
- CTA overview
- Reporting company
- Beneficial ownership
- Company applicants
- Reporting requirements
- CTA exemptions
- BOI storage and access
- Impact on real estate entities
- SPEs
- Pooled investment vehicles
- Others
- Effect on real estate transactions
- Lenders' AML protocols
- Due diligence for investors/buyers
- Status of noteworthy state transparency laws
- NY
- PA
- CA
- Best practices for compliance
Benefits
The panel will review these and other important considerations:
- Which real estate entities will likely be most affected by the CTA's implementation and why?
- What exemptions may apply?
- How will the CTA's reporting requirements affect real estate transactions for lenders and investors/buyers?
- How will BOI be stored and who will have access to the information?
- What state laws should real estate counsel be aware of that have similar reporting requirements as the CTA?
An encore presentation featuring Live Q&A.
FACULTY
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Kevin Gaunt
Counsel
Hunton Andrews Kurth
Mr. Gaunt helps clients with white collar defense, government and internal investigations, and regulatory enforcement. He advises on complex compliance and sanctions issues and has a knack for matters involving data management and technology. Mr. Gaunt represents clients in a range of industries in matters involving national security and international trade matters such as economic sanctions and Office of Foreign Assets Control regulations, export control compliance, and the Foreign Agents Registration Act. He also advises clients on other white collar issues relating to financial crime, anti-money laundering, anti-bribery / anti-corruption and the FCPA, and government contracting fraud. He regularly provides compliance guidance to financial institutions and other clients related to closely scrutinized sectors such as the cannabis/marijuana industry, cryptocurrency markets, and fintech providers.
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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 New York metropolitan area. Since 1976, Mr. Weiner has represented domestic and foreign clients in equity and debt transactions, the creation of real estate funds and joint ventures, and transactions involving distressed real estate. His practice has had a significant concentration in the hospitality and real estate investment trust (REIT) sectors, and in leasing. Mr. Weiner’s clients have included funds, family offices, institutional lenders, universities, non-U.S. investors and New York City developers.
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