Currency Transaction Report (CTR)

🔹 Definition

A Currency Transaction Report (CTR) is a mandatory report filed by financial institutions to government authorities—such as the Financial Crimes Enforcement Network (FinCEN) in the United States—when a customer conducts a cash transaction exceeding a specified threshold, typically USD 10,000 in a single day. The CTR is designed to detect and deter money laundering, tax evasion, and other financial crimes involving large sums of physical currency.

CTR reporting is a fundamental requirement under the Bank Secrecy Act (BSA) and similar AML regulations in many jurisdictions. It applies to banks, money service businesses (MSBs), casinos, and other covered entities.

🔹 Frequently Asked Questions (FAQs)

Q1: When is a CTR required?
A CTR must be filed when:

• A cash transaction (deposit, withdrawal, exchange, or payment) exceeds the jurisdiction’s reporting threshold (e.g., USD 10,000 in the U.S.)
• The transaction is conducted by or on behalf of the same person within a single business day
• The payment is made in actual currency (coins or paper money), not checks, wire transfers, or other instruments

Q2: What information is included in a CTR?
A CTR typically includes:

• Name, address, and identification of the individual conducting the transaction
• Business or occupation of the individual
• Date, time, amount, and nature of the transaction
• Account numbers and locations involved
• Identification of the employee processing the transaction

Q3: Is customer consent required to file a CTR?
No. Filing a CTR is a legal obligation, and institutions are prohibited from informing the customer that a CTR has been or will be filed—known as the anti-tipping-off rule.

Q4: What happens if a business fails to file a CTR?
Failure to file a required CTR may result in:

• Regulatory fines and enforcement actions
• Criminal liability for willful non-compliance
• Heightened scrutiny during future audits or examinations
• Reputational risk and potential loss of license

Q5: How does CTR relate to AML compliance?
CTR filings help regulators identify suspicious patterns such as structuring (breaking up large amounts into smaller transactions to evade reporting) and other red flags of illicit activity. It is a foundational tool for building case intelligence and detecting financial crime trends.