Two things:

1. I always understood that when determining the record keeping requirement on the sale of monetary instruments, you would include a fee paid in cash as well as the instrument amount. For instance, if you sold a cashier's check in the amount of $2995 for cash, and charged a $5.50 fee, which was also paid in cash, it triggers the record keeping requirement. Is that correct?
2. If that is correct, can anyone point me to a reference (URL link?). I've tried looking at 31CFR 103.29 but can't find anything that specifically says that fees paid in cash are considered.

Thanks!

That is my understanding as well. Likewise, a check instrument for $9,995 with a $5.50 fee all paid in cash would not go on the log, but would instead have a CTR filed.

I don't remember if this was something that was addressed back with this rule came out (13 years ago!!). I can't find anything that specifically addresses it either, except fo the rule itself which states " involves currency of $3,000--$10,000 inclusive." To me "involves" means the amount of money that passed over the teller counter, not the amount of the check.

I agree totally with GreatBlue and like the reasoning. It's the overall transaction, not the amount of the check that's purchased.

Check out FinCEN's website at this address for FAQ's

http://www.fincen.gov/reg_faqs.html

Question #14 addresses the situation of filing CTR's when a fee is involved in the transaction.

I understand the reasoning because cash is being exchanged but I understood the Reg differently. "No financial institution may issue or sell a bank check, draft, cashier's check, money order, or traveler's check for $3,000 or more in currency unless it maintains records..."

If the check you issued was only $2,995 then we did not complete the recordkeeping. That's the way it was done before I started. Looks like I'll be stirring everyone up again.

Coincidently for CTR reporting, any cash exchange over $10,000 is reported regardless of if a fee is involved.

Just an update...

I spoke with J. Pratt with FinCEN and he told me that if you have a cashiers check purchase for $2,995 and a $10 fee it does not qualify for the monetary instrument recordkeeping requirement. He said the actual negotiable instrument must be at least $3,000 to initiate the recordkeeping requirement.

I think J Pratt is confused. It cannot possibly be the amount of the instrument that determines reportability. What if you sell a check for $12,000, of which $8,000 is paid for from a withdrawal from an account and the other $4,000 with cash? Would you record that? I would.

What about the sale of money orders and traveler's checks? In almost every case the amount of each actual negotiable instrument is less than $3,000.

It's the amount of cash, the amount of cash, the amount of cash!!!!

The reg is about tracking cash, cash, cash.

So, Amen! Amen! and Amen! to GreatBlue!

This may seem like a stupid question, but what if someone buys a money order with a check written on their account for $4,000. There was no exchange of cash, but the instrument they bought could easily be converted to cash?

I would say "see John's post above"....

Quote:

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The reg is about tracking cash, cash, cash.

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OK, OK, OK, Thanks!