What is a "currency transaction report" (CTR)?

What is a "currency transaction report" (CTR)?

• A. A report for transactions under $10,000
• B. A report filed for cash transactions over a certain amount
• C. A report detailing account opening procedures
• D. A report summarizing annual financial performance

Answer: (B)

A currency transaction report (CTR) is specifically designed to capture information about cash transactions that exceed a threshold of $10,000. Financial institutions are required to file these reports with the Financial Crimes Enforcement Network (FinCEN) to help combat money laundering and other financial crimes. The requirement for the report comes into play because large cash transactions can indicate potentially suspicious activity, making the report a critical component of anti-money laundering (AML) compliance. By focusing on transactions over the specified amount, CTRs serve as a tool for detection and prevention of illicit financial activities. This vigilance assists authorities in identifying and investigating patterns or activities that may involve illegal financial movements. Thus, the essence of a CTR is aligned with monetary regulations emphasizing transparency and accountability within financial institutions regarding substantial cash dealings.

A currency transaction report (CTR) is specifically designed to capture information about cash transactions that exceed a threshold of $10,000. Financial institutions are required to file these reports with the Financial Crimes Enforcement Network (FinCEN) to help combat money laundering and other financial crimes. The requirement for the report comes into play because large cash transactions can indicate potentially suspicious activity, making the report a critical component of anti-money laundering (AML) compliance.

By focusing on transactions over the specified amount, CTRs serve as a tool for detection and prevention of illicit financial activities. This vigilance assists authorities in identifying and investigating patterns or activities that may involve illegal financial movements. Thus, the essence of a CTR is aligned with monetary regulations emphasizing transparency and accountability within financial institutions regarding substantial cash dealings.