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Question 224

The manager of Main Street branch calls and relates the following information: John Smith purchased a cashier's check for $1,000 cash at 10:00 a. m. on

Tuesday. At 11:30 a. m. Mr. Smith returned and purchased a cashier's check for $2,500 cash and deposited traveler's checks totaling $9,000 into his checking account. At 4:00 p.m. Mr. Smith returned and deposited $8,000 cash into his checking account. This deposit was after normal banking hours, so it was recorded as of Wednesday's business date. What action should the bank take?

None, because no single cash transaction exceeded $10,000

File a Currency Transaction Report (CTR) for $11,500

Record the $1,000, $2,500, and $9,000 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold

Record the $1,000 and $2,500 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold

Correct Answer: B

The bank should file a Currency Transaction Report (CTR) for $11,500. According to banking regulations, CTRs are required for transactions involving more than $10,000 in cash. Although no single transaction exceeded $10,000, the total amount of cash transactions for the day ($1,000 + $2,500 + $8,000) is $11,500, which exceeds the $10,000 threshold. Therefore, the bank is required to report these transactions by filing a CTR.

Discussion

Cam22Option: D

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