What triggers the requirement to file FinCEN Form 112?

What triggers the requirement to file FinCEN Form 112?

• A. A cash deposit of more than $5,000
• B. A cash deposit of more than $7,500
• C. A cash deposit of more than $10,000
• D. A cash deposit of more than $15,000

Answer: (C)

The requirement to file FinCEN Form 112, also known as the Currency Transaction Report (CTR), is triggered by a cash deposit of more than $10,000. This filing requirement is part of the Bank Secrecy Act (BSA) regulations, which mandate that financial institutions report currency transactions that exceed this threshold to help detect and prevent money laundering and other financial crimes. When an individual or entity makes a cash deposit exceeding $10,000, it raises potential red flags regarding the source of funds and the intent of the transaction. By filing Form 112, the institution ensures compliance with federal regulations designed to promote transparency in financial activities. It's important for financial professionals to be aware of this threshold as it plays a critical role in risk management and regulatory compliance in the industry.

The requirement to file FinCEN Form 112, also known as the Currency Transaction Report (CTR), is triggered by a cash deposit of more than $10,000. This filing requirement is part of the Bank Secrecy Act (BSA) regulations, which mandate that financial institutions report currency transactions that exceed this threshold to help detect and prevent money laundering and other financial crimes.

When an individual or entity makes a cash deposit exceeding $10,000, it raises potential red flags regarding the source of funds and the intent of the transaction. By filing Form 112, the institution ensures compliance with federal regulations designed to promote transparency in financial activities. It's important for financial professionals to be aware of this threshold as it plays a critical role in risk management and regulatory compliance in the industry.