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What is Currency Transaction Report (CTR)?

A report a financial institution files with FinCEN when a customer conducts a cash transaction of more than $10,000 in a single business day.

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Definition

Currency Transaction Report (CTR)

Laws & Regulations Medium Relevance

A report a financial institution files with FinCEN when a customer conducts a cash transaction of more than $10,000 in a single business day. The trigger is aggregated across a single day of related deposits or withdrawals, and the filing deadline is 15 calendar days after the day of the transaction. CTRs are not confidential in the way SARs are; a firm may confirm a CTR was filed, but if a customer breaks up cash transactions to stay under the $10,000 threshold, that is 'structuring,' and the firm must file a SAR as well.

// EXAMPLE

A client brings $11,500 in cash into a branch to open a securities account. The firm files a CTR with FinCEN within 15 calendar days. If the client had brought the same amount in three separate cash deposits of $4,000, $4,000, and $3,500 in one week, the firm would file both a CTR (for the aggregated cash) and a SAR (for the structuring pattern).

// COMMON_CONFUSION

Students often confuse the CTR threshold with the SAR threshold. A CTR is triggered by cash of more than $10,000 in one business day, regardless of whether anything looks suspicious. A SAR is triggered by suspicion of illegal activity, with dollar minimums of $5,000 (suspect identified) or $25,000 (no suspect). Structuring transactions to stay under the CTR threshold is itself suspicious and requires a SAR.

How is Currency Transaction Report (CTR) tested on the exam?

  • Recognizing the $10,000 cash trigger for a CTR
  • Distinguishing a CTR (mechanical cash trigger) from a SAR (suspicion trigger)
  • Applying the 15 calendar-day filing deadline
  • Identifying structuring as a SAR trigger, not a way to avoid a CTR
  • Knowing CTRs are filed with FinCEN, not directly with the SEC or FINRA

Regulatory limits

Regulatory Limits

Description Limit Notes
CTR trigger More than $10,000 cash in a single business day Aggregated across related cash transactions during that day.
Filing deadline 15 calendar days after the transaction -
Filing recipient FinCEN Uses FinCEN Form 112.
Structuring Any amount below $10,000 designed to avoid the CTR Triggers a SAR in addition to any required CTR.

CTR = Cash Ten thousand Report. Over $10,000 in cash in one day, file within 15 days with FinCEN. If someone splits the cash to avoid the CTR, that is structuring and also needs a SAR.

Practice questions

Test your understanding with the questions below. Pick an answer to reveal the explanation.

Question 1

A customer deposits $12,000 in cash to fund a securities purchase. Which report is required?

Question 2

A customer makes three cash deposits of $3,500 on three consecutive days to avoid a CTR. What must the firm do?

Question 3

Which of the following is the correct filing deadline for a Currency Transaction Report?

What concepts relate to Currency Transaction Report (CTR)?

This term is part of this cluster :

Where does Currency Transaction Report (CTR) appear on the Series 6 exam?

This term is tested in the following FINRA Series 6 topic areas:

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