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← Series 7: Opens & Maintains Customer Accounts
Series 7 practice questionhardAccount Documentation — Currency Transaction Reports

A customer walks into a brokerage office and deposits $15,000 in cash to fund a new account. What reporting obligation does this trigger?

  1. ANo reporting is required since the amount is below $25,000
  2. BThe firm must file a Currency Transaction Report (CTR) with FinCEN since the cash transaction exceeds $10,000✓ Correct answer
  3. CThe firm must file a Suspicious Activity Report (SAR) since any cash deposit is suspicious
  4. DThe firm must report the transaction to FINRA within 5 business days
Explanation

Why B — The firm must file a Currency Transaction Report (CTR) with FinCEN since the cash transaction exceeds $10,000

Under the Bank Secrecy Act, financial institutions including broker-dealers must file a Currency Transaction Report (CTR) with the Financial Crimes Enforcement Network (FinCEN) for any cash transaction exceeding $10,000 in a single business day. The $15,000 cash deposit triggers this mandatory reporting requirement. CTRs are filed on FinCEN Form 112 and must be submitted within 15 calendar days of the transaction.

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