In which scenario is a Currency Transaction Report (CTR) NOT required?

In which scenario is a Currency Transaction Report (CTR) NOT required?

• A. Your client pays a $100,000 single premium annuity with a personal check
• B. A client pays off a loan with $12,000 in cash
• C. A client invests more than $10,000 of cash in a mutual fund account
• D. A bank client deposits more than $10,000 of cash into a certificate of deposit

Answer: (A)

A Currency Transaction Report (CTR) is specifically required for cash transactions exceeding $10,000. This requirement is part of regulations aimed at preventing money laundering and ensuring that financial institutions report large cash transactions that might indicate illegal activities. In the scenario where a client pays a $100,000 single premium annuity with a personal check, a CTR is not required because the transaction does not involve cash. The payment is made via a personal check, which does not fall under the cash transaction reporting requirements. Since the check is a non-cash method of payment, this scenario does not trigger the need for a CTR, despite the amount involved. On the other hand, the other scenarios involve cash transactions that exceed the $10,000 threshold, thereby necessitating a CTR to be filed. Payments or deposits made in cash are subject to reporting because they represent a higher potential risk for money laundering and other illegal activities.

A Currency Transaction Report (CTR) is specifically required for cash transactions exceeding $10,000. This requirement is part of regulations aimed at preventing money laundering and ensuring that financial institutions report large cash transactions that might indicate illegal activities.

In the scenario where a client pays a $100,000 single premium annuity with a personal check, a CTR is not required because the transaction does not involve cash. The payment is made via a personal check, which does not fall under the cash transaction reporting requirements. Since the check is a non-cash method of payment, this scenario does not trigger the need for a CTR, despite the amount involved.

On the other hand, the other scenarios involve cash transactions that exceed the $10,000 threshold, thereby necessitating a CTR to be filed. Payments or deposits made in cash are subject to reporting because they represent a higher potential risk for money laundering and other illegal activities.