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The Financial Crimes Enforcement Network (FinCEN) Tuesday issued an administrative ruling related to currency transaction reports (CTRs). The rule, which replaces and rescinds two former rulings, clarifies the requirements of financial institutions when reporting transactions involving sole proprietorships and legal entities operating under a "doing business as" (DBA) name.

Under the Bank Secrecy Act, a sole proprietorship is not a separate legal person from its individual owner. The new ruling clarifies that when preparing a CTR, an individual doing business in their own name should be reflected as such; but if doing business under a different name, then that name should appear in Item 8 "alternate name" in Part I of CTR Form 112. Each DBA should be listed in that item section.

These changes are intended to enhance regulatory efficiency and provide complete and accurate CTR data to law enforcement. The ruling takes effect April 6.

NAFCU has actively sought BSA/anti-money laundering regime improvements and relief for credit unions. The House in October passed two bills related to CTRs, suspicious activity report (SAR) filings, regulatory coordination and innovation, and beneficial ownership reporting. The association continues to urge the Senate to take up similar legislation. In addition, the association works closely with FinCEN to ensure credit unions are aware of regulatory changes and trends.