Answer:
I cannot point to a ruling because FinCEN, to my knowledge, hasn't published it formally. However, I've been told by FinCEN representatives that law enforcement wants to know when negotiable instruments are used, so the preferred method is to report that a negotiable instrument was cashed if the withdrawal was made by check, even if the transaction is completed by the owner of the account from which funds are withdrawn, and to report "deposit/withdrawal" if an internal withdrawal form was used.
When the CTR is used as a tool for locating the record of the actual transaction on your books, which of those two boxes was checked won't make a difference. The key will be the listing of the account number.
First published on BankersOnline.com 7/05/10
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