We have a customer who we need to file a SAR on, but also a CTR, someone has informed us we do NOT need to file a CTR if a SAR is filed, anyone know if this is right?

Absolutely not true! If currency in excess of $10,000 (in or out) was involved in the transaction, you must file a CTR whether or not a SAR is filed. The one is not connected to the other.

Now, if they were going to conduct a transaction that would have triggered a CTR and changed it to less than $10,000.01 when they found out about the required information, you would file the SAR and no CTR. In that case, however, you are not filing a CTR because the transaction was less than $10,000.01. It has nothing to do with the SAR.

You always fill out the CTR for transactions 10k and a penny or more no matter what. You do not have to fill a SAR in addition unless you want to report a transaction that is suspicious.