We have a scenario where a customer of ours cashes a check made out to the John Smith as custodian for Ben Smith and this is an UTMA account. The transaction is reportable because the check was for over 10K. We have John Smith's info. I have to put the minor's information on the CTR, correct? I would think the minor is benefitting from this money. The only thing is that the only person with an account here is John Smith. The UTMA account is not held here and the minor is not a customer. Any help would be nice!

As you indicate, you are going to have to assume that the minor benefitted from the transaction even though that may not be the case.

Fiduciaries have a responsibility to account for all of the funds they receive. To accomplish that, they do not turn assets into cash. None of the banks where I have worked would have cashed a check payable to a named fiduciary other than a representative payee.

The custodian is the one that cashed the check.

Also, we do not have any information on the minor. Trying to get in contact with customer that cashed the check to get the information. Or in this case, would we be ok with checking the "Unknown" boxes.

I understand it was the custodian (the fiduciary) who cashed the check, not the beneficiary. I'm suggesting that is wasn't a good decision to allow him to do it. It facilitated the conversion of the funds to his personal use; the minor may never see them.

You are going to have to assume that the minor benefitted from the transaction even though that may not be the case. You will complete the CTR with as much information as you can obtain on the minor and check "Unknown" for the critical fields where you do not have the information.

Based on the way FinCEN has given instructions on CTR completion in other fiduciary situations, I suggest you list the custodian has having benefitted from the transaction too. Generally, I think that is misleading, but it is probably accurate here.

I'm sorry, Ken I did not mean anything by the post saying it was the custodian that cashed the check. I hope I did not offend?

I agree about the funds and the minor never seeing them. I hope that is not the case.

I was not consulted on the cashing of that check. I wish I had been and I would have said the same thing as you, Ken.

I am waiting on some information on the Minor from the custodian. I already have the custodian's information filled out and ready to file once the minor's info is received.

Thank you so much Ken for the help!

I want to expand on this topic by asking a question. I don't yet have much information on what actually occurred, but from what I have been told, a custodian completed two separate $10, 000 cash transactions on behalf of two different minor children. I don't yet know the details beyond that, but I do know that a total of $20, 000 in cash was received by the same individual, who was identified to be the custodian for both.

Is it then correct that a CTR would be filed, naming each individual child on whose behalf the transactions were conducted? The teller obtained the custodian's information at the time of the transaction, but I'm sure there is scant information on hand for the two minors.

The filing of a SAR is also possible, obviously, but I want to be clear about how to properly advise on the CTR filing first.

Yes, if the information you have is that the custodian completed the transactions on behalf of the kids, you include "person" entries for each of the kids, with the ID information that you have available. You should try to get more complete info on the kids, but realistically, you're probably going to have to run with what you have. Follow the instructions on completing any required fields for which you don't have information.

And I agree that you have a possible SAR filing facing you.