Question from a CTR filing newbie:

We have a bank policy to withdraw any amount over $5,000 from a customer's account as an official check. If the customer wants to cash the check, we will do so.

If a customer withdraws an amount over $10,000 as a check and then cashes the check, is it considered a withdrawal or negotiable instrument cashed?

Common sense tells me the intent was to withdraw from the account and should be treated as a withdrawal, but I know common sense doesn't always prevail here.

Thanks!

Report it as a negotiable instrument cashed.

I would consider it as negotiable instrument cased. Others may have a different opinion, but the last transaction was cashing the check and that is what was used to give them the funds.

Thank you! I knew the answer would be the opposite of my assumption!

I have to ask - What is the reason for your Bank's Policy? Because the practical effect is to twist your noodle on how to properly record what happened.

Account withdrawal = personal/counter check or misc. debit to the account.

Negotiable Instrument = cashiers check or foreign cash check.

In question 30 FinCEN addresses a "step transaction" where it directs the bank to report the cash transaction the customer wanted, not the transaction that actually took place. If you can find the logic and choose to be consistent with it, you would report the transaction as a withdrawal.

Your time would be better spent tracing your bank's policy back to its source and saying: Really?

On its face, it makes no sense.