An individual comes into the bank and makes a $6,000 cash deposit into a checking account. At the same time, the individual buys a $7,000 cashier's check with cash. According to the Bank Secrecy Act, what is the bank is required to do?
An individual comes into the bank and makes a $6,000 cash deposit into a checking account. At the same time, the individual buys a $7,000 cashier's check with cash. According to the Bank Secrecy Act, what is the bank is required to do?
The Bank Secrecy Act requires that when a customer conducts multiple cash transactions within a single business day totaling more than $10,000, the bank must file a Currency Transaction Report (CTR) for the aggregate amount. In this scenario, the individual made a $6,000 cash deposit and bought a $7,000 cashier's check with cash, totaling $13,000. Therefore, the bank needs to obtain the necessary recordkeeping information for the purchase of the cashier's check and complete a CTR for the total cash-in transaction of $13,000.
Under the Bank Secrecy Act (BSA), when a customer conducts multiple cash transactions within a single business day that total more than $10,000, the bank is required to file a Currency Transaction Report (CTR) for the aggregate amount. In this case, the individual made a $6,000 cash deposit into a checking account and bought a $7,000 cashier's check with cash, totaling $13,000. Therefore, the bank should obtain the necessary recordkeeping information for the purchase of the cashier's check and complete a CTR for the total cash-in transaction of $13,000.