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#2276961 - 10/24/22 01:37 PM CTR type of transaction - audit
Susan Offline
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Our auditors selected a CTR sample that was a check deposit, with the customer getting cash back on the deposit. The auditor thinks the CTR should have been filed as 27d "Negotiable instrument cashed." We disagree.

How do YOU classify that type of transaction?

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#2276967 - 10/24/22 03:16 PM Re: CTR type of transaction - audit Susan
JennKK2 Offline
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negotiable instrument cashed
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#2276985 - 10/24/22 06:28 PM Re: CTR type of transaction - audit Susan
HappyGilmore Offline
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Pulling people out of the ditc...
they cashed a check, a portion which was given to them, the remainder placed into their account, so it sounds like your auditor is correct, unless there is something else we are not aware of.

how did you classify it?
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#2277010 - 10/24/22 09:15 PM Re: CTR type of transaction - audit Susan
John Burnett Offline
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That's the way that FinCEN wants it done, as I recall (although I cannot put my fingers on the guidance document), even when the depositor uses what banks often call the "cash back" method of depositing the full check and indicating a cash-back amount on the deposit slip.
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#2277076 - 10/25/22 07:51 PM Re: CTR type of transaction - audit Susan
Susan Offline
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Joined: Mar 2018
Posts: 75
I was taught (8 years ago, and perhaps incorrectly) to select "Z - Other" and type in "deposit with cash back." I have never had questions from auditors/examiners about it, although that might be because it doesn't happen very frequently and is less likely to be selected in a random sampling. I pushed back with the auditor and they removed it from their findings.

I was also unable to find anything from Fincen about it.

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#2277772 - 11/09/22 06:29 PM Re: CTR type of transaction - audit Susan
Susan Offline
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Joined: Mar 2018
Posts: 75
We asked Fincen, and this was their response:

"Please list as:
27d Negotiable instrument(s) cashed for the $12,000 amount,

We don't have guidance on this."

So I have been filing these incorrectly for years.

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