If a person (customer or not) purchases a repo from the bank in an amount between $3,000.00 and $10,000.00 and the bank converts the cash into a cashier's check before applying it to the correct account, do we need to log it on the Monetary Instruments Log? My take on it is that the person didn't intend to purchase a check and shouldn't be logged. But the paper trail makes it seem like he did. If we don't log it, and notate on our Large Currency Report what really happened, will it keep the examiners happy?

"the bank converts the cash into a cashier's check before applying it to the correct account, do we need to log it on the Monetary Instruments Log?"

Did you put customer as remittur on cashiers check? If so, YES, put it in the MIL. If no, from what I'm reading it appears to be an internal transaction for the bank and I would simply insure the cash in is noted in large currency report.

(a) No financial institution may issue or sell a bank check or draft, cashier's check, money order or traveler's check for $3,000 or more in currency unless it maintains records of the following information...

Your bank did not sell a cashier's check. You issued it for internal purposes only. It does not make any difference if you showed the customer as the remitter or simply left it blank; your customer did not purchase the check.

If you keep these records via a log, listing this transaction there might create as much confusion as it avoids. You might simply make a note on the register copy of the check in order to enlighten any reviewer.

Thanks for your somewhat opposite responses. Ken, since your answer is the closest to my own way of thinking, I choose you! Thanks to both of you for taking the time to help out.