I know that the answer to this is really simple but it has been a long day and I need a second opinion. We had a customer who cashed a $6,500 check early in the day. Later he came in and did a currency exchange for $4,000. I am thinking that we do not need to file because we only cashed out $6,500. If it were reversed and he deposited the $6,500 and exchanged the $4,000 I know we would have to file because he would have brought in $10,500. Like I said, the more I think about this today, the more confused I am making myself. Thank you in advance for your responses.

The exchange is cash in and cash out. The cash-out portion gets added to the check that was cashed. So you customer went over the top.

Total your cash-ins, then total your cash-outs. If either total exceeds $10,000, it's reportable. In this case, your cash-outs totaled $10,500.