Considering the function of financial institutions, it is crucial to understand a currency transaction report's concept and purpose, also known as CTR. The Currency Transaction Report is a report submitted to FinCEN by US financial institutions on all transactions involving money equal to or greater than $10,000.
History of Currency Transaction Reports
Designating transactions as suspicious was introduced in 1996
, it has aided in revolutionizing financial institutions and the government's combat against financial crimes and money laundering. Before being accrued, financial institutions had to make a formal phone call to law enforcement to look at a transaction. Institutions were also concerned about their customers' privacy and did not want to be held responsible for making any information public. Then with the creation of the Money Laundering Control Act in 1986, privacy was no longer an issue.
Consequently, if a customer learns that a CTR has been recorded about their transaction and then chooses to terminate the transaction, compliance professionals or Money Laundering Reporting Officers (MLRO) must file a suspicious activity report (SAR).
The bank is not obliged to notify the customer of the notification to be made at the time of suspicious transaction. If the customer wishes to cancel the transaction due to a notice, the Bank still has to complete the suspicious activity report.
