A Currency Transaction Report must be filed for which of the following transactions?
A. Andrew cashes a $12,000 check, receiving the proceeds in $100 bills.
B. Anytown Coffee Shop makes a loan payment with $500 cash plus a $1,000 check.
C. Marcie withdraws $9,000 cash from her savings account to open a certificate of deposit.
D. Mytown Engineering Inc. deposits $7,000 cash at 10:00 a.m. and $2,500 cash later the same business day.
Answer (2)
A Currency Transaction Report (CTR) is required for cash transactions exceeding $10,000.
Option A involves a $12,000 cash transaction.
Options B, C, and D do not exceed the $10,000 threshold.
Therefore, only Option A requires a CTR: A
Explanation
Understanding the Requirement A Currency Transaction Report (CTR) must be filed for any transaction or series of related transactions that involve more than $10,000 in cash. We need to examine each option to determine if it meets this criterion.
Analyzing Option A Option A: Andrew cashes a $12,000 check, receiving the proceeds in $100 bills. This involves a cash transaction of $12,000.
Analyzing Option B Option B: Anytown Coffee Shop makes a loan payment with $500 cash plus a $1,000 check. This involves only $500 in cash.
Analyzing Option C Option C: Marcie withdraws $9,000 cash from her savings account to open a certificate of deposit. This involves a cash transaction of $9,000.
Analyzing Option D Option D: Mytown Engineering Inc. deposits $7,000 cash at 10:00 a.m. and $2,500 cash later the same business day. These transactions are aggregated because they occur on the same business day. The total cash deposit is $7,000 + $2,500 = $9,500.
Identifying the Transaction Requiring a CTR Now, let's determine which of these transactions requires a CTR. Option A involves $12,000 in cash, which is more than $10,000. Options B, C, and D involve $500, $9,000, and $9,500 in cash, respectively, none of which exceed $10,000. Therefore, only Option A requires a CTR.
Final Answer Therefore, the Currency Transaction Report must be filed for option A.
Examples
Currency Transaction Reports (CTRs) are essential in preventing money laundering and financial crimes. For example, if a business owner tries to deposit several smaller amounts of cash throughout the day to avoid the $10,000 threshold, banks are required to aggregate these transactions and report them if the total exceeds $10,000. This helps law enforcement track suspicious financial activity and ensures transparency in large cash transactions.
The Currency Transaction Report must be filed for Option A, which involves a cash transaction of $12,000. This exceeds the $10,000 threshold set for reporting. Options B, C, and D do not require a CTR as they all fall below this limit.
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