Glossary term
Currency Transaction Report (CTR)
Subject: Financial Crime, Reporting and FIU
Also known as: Cash Transaction Report, CTR
A currency transaction report is a report that a bank or other covered business files with the authorities on cash transactions above a set amount, whether or not anything looks suspicious.
Explanation
A CTR is triggered by size, not by suspicion. Once a cash deposit, withdrawal or exchange passes the legal threshold, the institution files the report, usually electronically to the national financial intelligence unit. Thresholds differ by country, and some regimes add up several cash transactions by the same person in a day. Reports build a database that investigators use to trace cash, spot unusual cash users and test other leads. Because the report is routine, it carries no accusation. Criminals know this, which is why they try structuring to stay below the line. Compliance teams treat CTR filing as a processing task with strict deadlines and accuracy checks, separate from the suspicion-based work of filing suspicious reports. Investigators use these filings to trace cash, and structuring cases usually begin by comparing them with deposits just under the line.
Example
A retail business deposits 14,000 in cash at a bank where the reporting threshold is 10,000. The bank's system detects that the deposit passes the limit and produces a CTR with the depositor's details. The branch confirms the identity of the person depositing and submits the report within the deadline. No suspicion arises, and the customer is not told anything special.
Not to be confused with
- Suspicious Activity Report / Suspicious Transaction Report (SAR/STR)
- A SAR or STR depends on suspicion and analysis, at any amount. A CTR depends only on the amount and type of transaction.