Thread Options
#1713639 - 06/25/12 01:47 PM CTR - Check with a hold
jgriffin Offline
New Poster
Joined: Jan 2012
Posts: 4
Let's say that someone has limited funds in their account, they deposit a large check, the financial institution places a hold on this. After the hold is removed that person comes in and withdrawals cash which required a CTR to be filed but not the whole amount on the check. Item 32 on a CTR is "Negotiable Instrument(s) Cashed". Should this be checked even though the check was deposited and now the cash is being withdrawn due to a hold?

Return to Top
BSA/AML/CIP/OFAC Forum
#1713644 - 06/25/12 01:55 PM Re: CTR - Check with a hold jgriffin
Miss Banker Offline
100 Club
Joined: Feb 2004
Posts: 235
That would be considered a withdrawal.

(Assuming the hold was for a certain amount of business days and the customer withdrew the funds from said check at least a day after the deposit.)
_________________________
"I shall permit no man to narrow and degrade my soul by making me hate him." ~ Booker T. Washington

Return to Top
#1713646 - 06/25/12 01:58 PM Re: CTR - Check with a hold jgriffin
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,544
Cape Cod
No. There are two distinct transactions: (1) the deposit of the check, which is not reportable; and (2) the withdrawal of cash in excess of $10,000, which is reportable.

As it happens, if the deposit was to a checking, NOW or MMDA account and the cash withdrawal was completed by check drawn on that account, the preferred way to categorize the transaction is as a Negotiable Instrument Cashed. If, however, the cash was withdrawn using a teller form or a non-negotiable "counter check," you should describe it using "Deposit/withdrawal."

The hold is what's often called a "red herring" in this scenario. It looks like a significant fact, but it has no relevance to the discussion.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1713649 - 06/25/12 02:02 PM Re: CTR - Check with a hold jgriffin
Miss Banker Offline
100 Club
Joined: Feb 2004
Posts: 235
One significant scenario I omitted. Very true, very true... Sorry about that. Do I get the 'Monday' free pass? smile
_________________________
"I shall permit no man to narrow and degrade my soul by making me hate him." ~ Booker T. Washington

Return to Top
#1713661 - 06/25/12 02:18 PM Re: CTR - Check with a hold jgriffin
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,544
Cape Cod
No pass needed. We've all been there.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1713674 - 06/25/12 03:10 PM Re: CTR - Check with a hold jgriffin
jgriffin Offline
New Poster
Joined: Jan 2012
Posts: 4
Thank you both for your quick responses!!

Return to Top

Moderator:  Andy_Z