New Ruling Provides Additional Guidance on Completing CTRs
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According to a recent Financial Crimes Enforcement Network (FinCEN) ruling, when filing a currency transaction report (CTR) involving a sole proprietorship or a legal entity operating under a "doing business as" (DBA), financial institutions are now only required to complete one Section A.
The new administrative ruling (FIN-2008-R001) was published on January 25, 2008, and replaces the 2006 ruling (FIN-2006-R003) addressing sole proprietorships.
Background
Under the prior ruling (FIN-2006-R003), financial institutions were required to fill out two Section A’s of the CTR for a sole proprietorship—one for the sole proprietor and one for the sole proprietorship’s DBA name.
FIN-2006-R003 only addressed sole proprietorships, not other legal entities operating under a DBA name, resulting in requests for further guidance on the subject.
Complying with FIN-2008-R001
FIN-2008-R001 was issued to ensure complete and accurate data is submitted to law enforcement. It includes instructions for proper completion of Section A for both sole proprietorships and legal entities operating under a DBA, and provides examples of completed forms for a variety of scenarios.
FIN-2008-R001 replaces the 2006 administrative ruling, FIN-2006-R003. However, for those financial institutions that prefer to complete two Section A’s of the CTR, FinCEN will continue to accept documents filed according to the 2006 ruling.
For more information, contact Nancy Stertz, financial institutions compliance manager, at 1-888-529-2648 or nstertz@larsonallen.com.
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