Which action relates to the CTR and cash instrument purchases just under the CTR threshold?

Which action relates to the CTR and cash instrument purchases just under the CTR threshold?

• A. Large wire transfer to offshore account.
• B. Cash purchase of monetary instruments just under the CTR threshold.
• C. Electronic payment from a legitimate business.
• D. Depositing funds in a savings account.

Answer: (B)

The key idea is how CTRs trigger on cash-related activity and how purchasing monetary instruments can be used to stay just under the reporting threshold. A Currency Transaction Report is required for cash transactions that exceed $10,000 in one day, or for multiple transactions by the same customer that aggregate to that amount. Buying monetary instruments (like money orders or cashier’s checks) with cash in amounts just under that threshold can be a way to move funds while avoiding CTRs. This behavior signals structuring and potential attempts to evade reporting, which is a red flag in AML monitoring. The other options don’t tie directly to the CTR threshold in the same way: a large wire transfer is a non-cash transaction and not CTR-triggering in the same manner; an electronic payment from a legitimate business is routine; depositing funds in a savings account is standard banking activity and not specifically about purchasing cash instruments under the threshold.

The key idea is how CTRs trigger on cash-related activity and how purchasing monetary instruments can be used to stay just under the reporting threshold. A Currency Transaction Report is required for cash transactions that exceed $10,000 in one day, or for multiple transactions by the same customer that aggregate to that amount. Buying monetary instruments (like money orders or cashier’s checks) with cash in amounts just under that threshold can be a way to move funds while avoiding CTRs. This behavior signals structuring and potential attempts to evade reporting, which is a red flag in AML monitoring.

The other options don’t tie directly to the CTR threshold in the same way: a large wire transfer is a non-cash transaction and not CTR-triggering in the same manner; an electronic payment from a legitimate business is routine; depositing funds in a savings account is standard banking activity and not specifically about purchasing cash instruments under the threshold.