General Securities Sales Supervisor (Series10) Practice Exam

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For which of the following is a Currency Transaction Report (CTR) filed?

Withdrawals under $10,000
Deposits of any amount
Deposits over $10,000
Only for withdrawals over $10,000

The correct answer is: Deposits over $10,000

A Currency Transaction Report (CTR) is filed for any transaction that involves cash payments exceeding $10,000. This requirement is in place to help detect and prevent money laundering and other financial crimes. When a customer deposits more than $10,000 in cash, financial institutions are mandated to report this transaction to the Financial Crimes Enforcement Network (FinCEN). The rationale behind this rule is that large cash transactions can be indicative of suspicious activity that merits further scrutiny. By filing a CTR for deposits over this threshold, financial institutions contribute to a system of oversight and regulation designed to monitor and mitigate potential financial crimes. In contrast, smaller withdrawals or deposits, like those under $10,000, do not trigger the filing requirement, as they fall below the reporting threshold set by regulations. Thus, the only scenario where a CTR is specifically mandated is when cash deposits exceed $10,000.