spacer

Bank Secrecy Act of 1970
Bank Secrets Act
BSA Compliance
BSA Introduction
BSA Penalties
BSA Registration
BSA Regulations
BSA SARS
Country Advisories
Currency Transactions
Government Acronyms
Money Laundering
Money Transfers
Suspicious Activity
Unusual Activities
What to look for

 
 

 
 

Bank Secrecy Act (BSA) Regulations - Currency Transaction Reports (CTR)



Greg Cook, EA, CPA   


An MSB must file a report of each currency transaction involving cash-in or cash-out of more than $10,000 conducted by, through, or to the MSB on any one day by or on behalf of the same person.

Therefore, a CTR is required when a transaction meets all of the following conditions:

*In currency,
*Greater than $10,000 in either cash-in or cash-out,
*By, or on behalf of, the same person, and
*Occurs on one business day.

Aggregation

Multiple transactions conducted by or on behalf of the same person on the same day are considered to be one transaction for CTR purposes. In other words, the MSB must file a CTR if it knows the customer’s aggregate cash-in or cash-out transactions total more than $10,000 in one day.


Cash-in and Cash-out

Cash-in transactions must be added together with cash-in transactions and cash-out transactions must be added together with cash-out transactions to determine whether the CTR threshold (greater than $10,000) has been met in any one business day.

CTR Filing

The CTR is IRS Form 4789, Currency Transaction Report, and is available on www.msb.gov or by calling the IRS Forms Distribution Center at 1-800-829-3676. The form must be filed within 15 days from the date of the transaction(s).

The CTR requirement requires and MSB to:

*Verify and record customer ID,
*Obtain transaction information,
*Complete and file the CTR,
*Retain a copy of the CTR for five years from the date of filing the report.

Keep Records

Monetary Instrument “Log” – for Cash Purchases of Money Orders, Traveler’s Checks, Other Instruments

An MSB that sells money orders, traveler’s checks, or other instruments for cash must verify the identity of the customer and create and maintain a record of each purchase when the purchase involves cash between $3,000 and $10,000, inclusive. Thus, a record is required when:

*Cash-in of $3,000-$10,000, inclusive, and
*Cash-in is for the purchase of money orders, traveler’s checks, or other monetary instruments.


The Monetary Instrument “Log” requirement requires an MSB to:

*Verify and record customer ID,
*Record transaction information (for each money order, traveler’s check, or other instrument purchased: amount, serial number, and date sold),
*Retain the record for five years from the date of the transaction.

Funds Transfer Rules For Senders of Money Transfers

An MSB that accepts an instruction to send a money transfer of $3,000 or more must verify the identity of the send customer and create and maintain a record of the money transfer, regardless of the method of payment.

In addition, certain information must “travel,” that is, the MSB must send on certain information, to the next MSB or financial institution processing the transfer.

For Receivers of Money Transfers

An MSB that accepts an instruction to pay a money order transfer of $3,000 or more must verify the identity of the receiving customer and create and maintain a record of the money transfer, regardless of the method of payment.

The requirement to record funds transfers requires a money transmitter to:

*Verify customer ID,
*Record customer information,
*Record transaction information,
*Send information to receiving MSB,
*Retain the record for five years from the date of the transaction.

 

Cook and Company, Enrolled Agents


Financial Articles
401k Participation
Back Dated Stock Options
Before You Invest
Begin Investing
Borrow or Cash-Out?
Build America Bonds
Business Checkbook
Choosing a Broker
Credits
Debt Consolidation
Diversification
Dividend Safety
Early Pay-Off
Equipment Leasing
Foreign Bank Account
How Much to Invest?
Impulse Spending
Investing Basics
Investing for Retirement
Investing Mistakes
Investing Traps
Investment Strategy
Investment Style
IRA Beneficiary
Lease Agreement
Life Insurance
Long Term Care
Long Term Investments
Losses in IRA
Mutual Funds - The Basics
My Financial Info
NONDISCLOSURE AGREEMENT
Oil and Gas
Online Trading
Recovery Zone Bonds
REITS
Rental Real Estate
Risk Tolerance
Self Directed IRA
Self-Directed IRA Rules
Shareholder Rights
Spend Wisely
Tax Credit Bonds for Schools
The Budget
Types of Bonds
Types of Investments
Types of Stock
Understanding Bonds
Wash Sale Rules
When to Sell
Where to Invest
Why Budget?
Yield Curves


Cook and Company, Enrolled Agents


Note
On October 3, 2007 I attended the Practitioners Council Liaison Meeting at the Internal Revenue Service's Birmingham, Alabama office. One of the IRS speakers at this meeting was Susan Vega, Bank Secrecy Act Expert. I found the information Mrs. Vega presented to be very interesting and informative and decided to dedicate several pages of our website to it.



Cook and Company Site Map

 

Copyright © 1994-2010 Cook & Co. Toll-Free Nationwide 1-800-551-6253 or 6254  Main Tel. 256-586-4111 Fax 256-586-4138 Bara Business Center 124 South Main Street  Arab, Alabama 35016  Direct Phone Lines From Birmingham: 322-7452 Huntsville: 534-6922  Cook & Co., Enrolled Agents are licensed by the U.S. Treasury Department to represent taxpayers before the Internal Revenue Service (IRS). Greg Cook is a Certified Public Accountant (CPA) licensed by the states of Alabama and Tennessee.

 [ Greg Cook ] [ Disclosure ] [ Privacy Policy ] [ Terms of Use ] [ barabusiness.com ]

bara.net