Compliance: FinCEN issues sole proprietorship, legal entity ruling

February 18, 2020

The Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a ruling last week to clarify Currency Transaction Report (CTR) Form 112 filing obligations when reporting transactions involving sole proprietorships. A recent CUNA CompBlog entry details exactly what the ruling means for credit unions.

Specifically, FinCEN is clarifying the requirements of financial institutions reporting on currency transactions involving sole proprietorships and legal entities operating under a “doing business as” (“DBA”) name when filing the current CTR FinCEN Form 112.

Effective April 6, the ruling (FIN-2020-R001) supersedes two previous rulings, FIN-2006-R003 and FIN-2008-R001, which have been rescinded.

FinCEN notes this both enhances regulatory efficiency and provides complete and accurate CTR data to law enforcement.

The ruling details definitions of “sole proprietorship” and “legal entity” and outlines how to fill out CTR forms for each type.

In addition to the CompBlogCUNA’s Compliance Community contains discussion boards and a number of other resources for credit union compliance professionals around the country.