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#347882 - 04/18/05 04:08 PM CTR Question
Baylor Dad Offline
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Baylor Dad
Joined: Oct 2000
Posts: 21
Texas
A small business (incorporated) needs cash for its daily operations, and the owner writes a check on the business account, payable to cash, and then the owner comes in to cash it (indorsing it personally). This is done on a regular basis to finance the cash needs, and other items indicate it would be a regular need.

Should Section A of the CTR be for the owner and Section B show conducted on own behalf, and item 32 (negotiable instrument cashed) be checked since it is not on their personal account, plus on the back show on behalf of the business in Section A and the information on the owner again in Section B? Or should the CTR just have the business in Section A on the front and section B show the owner information, and not show the owner as receiving any benefit?

I am unsure because the item payable to cash is a bearer instrument, so we may need to consider them as having received some benefit. Plus, that would affect whether we could check item 32 or check item showing withdrawal (you could show either if it is an on-us item presented by the payee on their own account).

Thank you.

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#347883 - 04/18/05 04:43 PM Re: CTR Question
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
I would enter the business in section A and the owner in section B. As the purpose of the withdrawal is to meet the daily operations needs of the business, the business, and not the individual, is the beneficiary of the transaction.

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#347884 - 04/18/05 05:53 PM Re: CTR Question
GuitarDude Offline
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GuitarDude
Joined: Nov 2004
Posts: 5,925
So Cal
I agree with Jac. Many businesses will make checks out to "cash" for their daily operating needs or petty cash, rather than to a particular individual. It helps with their recordkeeping.
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