Skip to content

CTR Dilemma- Proof of Funds for Transfer

Answered by: 

We have a CTR dilemma. A customer came in with $20,000 cash. - The funds were first deposited into his account. - He then wanted to purchase a cashier check for $7,000. - He returned later the same day with an account number of a family member and wanted to transfer $18,000 using the cash deposit and preexisting funds from his account. He is not on the family member's account. The reason stated was that they are in the process of buying a house and escrow wanted him to show the proof of funds in a statement which was the reason for the transfer. How would you complete the CTR in this situation: is there only one Part 1 (customer) or two Part 1 (customer and family member)? And the $7,000, would be under negotiable instrument and $13,000 under fund transfer? We also plan on filing a SAR.

I would include two part 1 sections for your customer: the first with item 2a and 3 checked, for the cashier's check purchase; the second with items 2b and 3 for the $13,000 cash toward the transfer to the family member's account.
Then, of course, there would also be a part 1 section for the family member with item 2c checked, again for $13,000.

Clearly, there is no guidance from FinCEN directly on transactions like those you have described. But I think a CTR completed this way covers the intent of the CTR filing requirement.

Don't forget that you also have two other records to complete and retain. The first is for the cash purchase of the cashier's check under 31 CFR 1010.415(a)(1) and the second is for the funds transfer of over $3,000 under 31 CFR 1020.410(a)(1).

First published on 11/14/2021

Filed under: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics