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#1492366 - 01/10/11 04:12 PM CTR prep for sole props' cashing a check
Trees Offline
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I remember the guidance that come out a couple years ago about handling sole props. For us, when John Doe deposits money to his business we complete the second page of the CTR for him as an individual benefitting from the deposit.

We had a hiccup here last week where we completed a CTR for a sole prop that cashed a check drawn on another customer. In this case we also completed the second page. Is this a big enough sin where you would recommend we amend the CTR as this was a cash out versus deposit?

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#1493064 - 01/11/11 04:14 PM Re: CTR prep for sole props' cashing a check Trees
BowlingQueen Offline
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Wisconsin
We complete Pg 1, Section A on the sole prop as an individual, with his/her residential address, and Pg 2, Section A with his/her DBA and the business address (if there is one). Although we don't have to do it this way anymore, we FINALLY got the tellers to complete them correctly this way (for the most part) before FinCEN said it wasn't necessary to complete both.
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#1493154 - 01/11/11 05:33 PM Re: CTR prep for sole props' cashing a check BowlingQueen
devsfan Offline
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NYC
There was guidance some time back to indicate only 1 Part 1 section A showing the individual's SSN and DOB but with DBA name and business address.
Last edited by devsfan; 01/11/11 05:34 PM.
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#1493168 - 01/11/11 05:53 PM Re: CTR prep for sole props' cashing a check devsfan
John Burnett Offline
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John Burnett
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Cape Cod
Originally Posted By: devsfan
There was guidance some time back to indicate only 1 Part 1 section A showing the individual's SSN and DOB but with DBA name and business address.
Yes. Originally, FinCEN issued a ruling in 2006 that required us to assume the fiction that the sole proprietor and the business were two separate persons, and two Section A entries had to be completed. Banks and service providers let out a hue and cry over that, but a lot of systems were rewritten to accommodate that rule. Then, in 2008, FinCEN replaced the 2006 ruling with a newer one that addressed not only sole proprietorships but also other DBA situations. They left the option open to continue handling things as the 2006 rule had required (so that the investment in software and procedural changes weren't lost), but also allow the use of a single Section A.

The most recent ruling is found HERE.
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#1494437 - 01/13/11 02:47 PM Re: CTR prep for sole props' cashing a check John Burnett
Trees Offline
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Can we say this guidance applies to both deposits and withdrawals?

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#1494566 - 01/13/11 04:25 PM Re: CTR prep for sole props' cashing a check Trees
John Burnett Offline
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John Burnett
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Cape Cod
Certainly.
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