CTR and STR are both acronyms related to financial transactions and reporting. Here's a breakdown:
CTR: Currency Transaction Report
A Currency Transaction Report (CTR) is a report that banks in the United States are required to file with the Financial Crimes Enforcement Network (FinCEN) for any transaction (or series of related transactions) in currency (i.e., cash) exceeding \$10,000 in a single day.
- Purpose: CTRs are designed to help detect and prevent money laundering.
- Who Files: Banks and other financial institutions.
- Trigger: A cash transaction or related transactions totaling more than \$10,000 within a 24-hour period.
- Example: If a person deposits \$11,000 in cash into their bank account, the bank must file a CTR.
STR: Suspicious Transaction Report
Based on the provided context, while a definition wasn't directly offered, it implies a "suspicious transaction report" (STR). A suspicious transaction report may have derived its name from CTR.
- Purpose: To report transactions that appear suspicious and may indicate money laundering, fraud, or other illegal activities.
- Filers: Financial institutions and other businesses that are prone to money laundering.
- Trigger: Transactions that raise red flags, even if they don't exceed the \$10,000 threshold that requires a CTR. This could include unusual transaction patterns, lack of apparent legitimate purpose, or inconsistencies with a customer's known business or personal activities.
| Feature | CTR (Currency Transaction Report) | STR (Suspicious Transaction Report) |
|---|---|---|
| Trigger | Cash transaction(s) exceeding \$10,000 in one day | Suspicious activity, regardless of the dollar amount |
| Purpose | Report large cash transactions | Report potentially illegal or illicit activities |
| Primary Filers | Banks | Financial institutions and various types of businesses |
