What report must be completed when a customer provides more than $10,000 in cash?

When a customer deposits more than $10,000 in cash, a Currency Transaction Report (CTR) must be completed. This requirement is established by the Bank Secrecy Act (BSA) to help the government track large cash transactions that could potentially be linked to money laundering, tax evasion, or other financial crimes. The CTR ensures that financial institutions report these transactions to the appropriate regulatory bodies to help maintain the integrity of the financial system.

The CTR collects essential information, such as the customer’s identity and the details of the transaction, to prevent illegal activities. Banks are required to file this report within a specified timeframe of the transaction, capturing details like the amount, date, and type of currency involved.

In contrast, a Suspicious Activity Report (SAR) is utilized when a bank detects suspicious behavior that may indicate possible illegal activity, but it is not specifically tied to a transaction exceeding $10,000 in cash. Financial Disclosure Reports and Annual Income Reports are not requirements for reporting cash transactions and typically serve different purposes related to personal finance or credit assessments. Therefore, in the context of cash transactions exceeding the designated amount, the CTR is the appropriate and legally mandated report to file.