We frequently receive compliance questions regarding various issues related to currency transaction reports (CTRs). However, this blog is going to address one of the scenarios I’ve been presented with recently.
The question I received was regarding whether a withdrawal and a deposit can be included on the same CTR. So, what does the applicable guidance say?
Before we get into it, when are credit unions actually required to file a CTR? Section 1010.311 of FinCEN’s regulations requires credit unions to “file a report of each deposit, withdrawal, exchange of currency or other payment or transfer, by, through, or to such financial institution which involves a transaction in currency of more than $10,000, except as otherwise provided in this section.”
Going back to our question, it is helpful to note that section 1010.313(b) discusses aggregation of multiple transactions made in cash on the same day, stating:
“(b) Multiple transactions. In the case of financial institutions other than casinos, for purposes of the transactions in currency reporting requirements in this chapter, multiple currency transactions shall be treated as a single transaction if the financial institution has knowledge that they are by or on behalf of any person and result in either cash in or cash out totaling more than $10,000 during any one business day (or in the case of the U.S. Postal Service, any one day). Deposits made at night or over a weekend or holiday shall be treated as if received on the next business day following the deposit.” (Emphasis added.)
Furthermore, this FinCEN FAQ (#17) is on point to our question at hand and provides that:
“All the individual transactions a financial institution has knowledge of being conducted by or on behalf of the same person during a single business day must be aggregated. Debits must be added to debits, and credits must be added to credits. If cash debit or credit totals exceed $10,000 in a business day, a CTR is required. If debits and credits each exceed $10,000, they can each be reported on a single CTR, but financial institutions should not off-set debits and credits against one another or reconcile for reporting purposes cash-in transactions with cash-out transactions.” (Emphasis added).
Based on the above, when it comes to aggregated amounts the debits must be added to debits and the credits must be added to credits. Meaning, if the total amount of debits exceeds $10,000 then a CTR must be filed, and if the total amount of credits exceeds $10,000 then a CTR must be filed. However, as the above FAQ points out, “[i]f debits and credits each exceed $10,000, they can each be reported on a single CTR”. It goes on to point out that credit unions should not off-set them (debits and credits) against one another (“or reconcile for reporting purposes cash-in transactions with cash-out transactions.”)
When your credit union has a question regarding filing CTRs, please don’t hesitate to contact America’s Credit Unions’ Compliance Team at compliance@americascreditunions.org. Additionally, here are some other resources that you may find helpful when issues surrounding CTRs arise at your credit union: