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Anti-Money Laundering

  • Currency Transaction Reporting

    A financial institution and any “nonfinancial trade or business” must file a report concerning a transaction (or series of related transactions) in excess of $10,000 in currency.

    FinCEN regulation 31 CFR 1010.310 requires that financial institutions file currency transaction reports (CTRs). FCMs and IBs are defined as “financial institutions” and thus must file CTRs in accordance with regulation 31 CFR 1026.310.

    FinCEN regulation 31 CFR § 1010.330 requires that a trade or business must file a report concerning a transaction (or series of related transactions) in excess of $10,000 in currency. These entities do so by filing the IRS Form 8300, which also can be used voluntarily to report any suspicious transaction, even if the total amount does not exceed $10,000. CTAs, CPOs, RFEDs, MSPs and SDs fall within the definition of “trade or business” for purposes of reporting and thus are required to file the IRS Form 8300.

    FinCEN has issued an educational pamphlet, “Notice to Customers: A CTR Reference Guide,” for financial institutions and their customers containing information on the currency transaction reporting requirement. Since April 1, 2013, financial institutions must use the FinCEN reports that are available only electronically through the BSA E-Filing System. The new reports include the FinCEN CTR, which replaced the Form 104 that financial institutions, including FCMs and IBs, had previously used. A nonfinancial trade or business may electronically file the Form 8300.

    On October 5, 2012, FinCEN held an Informational Webinar on the new FinCEN CTR.