{"id":14126,"date":"2010-10-17T16:18:49","date_gmt":"2010-10-17T20:18:49","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=14126"},"modified":"2010-10-17T16:18:49","modified_gmt":"2010-10-17T20:18:49","slug":"a-ctr-can-be-filed-if-you-make-a-large-currency-transfer-to-the-u-s","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/10\/17\/a-ctr-can-be-filed-if-you-make-a-large-currency-transfer-to-the-u-s\/","title":{"rendered":"A CTR Can Be Filed If You Make a Large Currency Transfer to the U.S."},"content":{"rendered":"

By Justin Thomas<\/strong><\/p>\n

The recipient will be subject to a Currency Transaction Report if he\/she is trying to withdraw more than $10,000 in cash<\/p>\n

Most developed countries have introduced legislation which poses restrictions on cash deposits or withdrawals or, alternatively, have subject these transactions to some kind of control. In the United States, if a person is trying to conduct such an operation with a financial institution and the sum is larger than $10,000, then the financial institution is obliged by law to report it and to file a Currency Transaction Report (CTR) with the Internal Revenue Service (IRS).<\/p>\n

One has to bear in mind that the federal law applies to each deposit, withdrawal, exchange of currency, or other payment or transfer by, through, or to the financial institution, involved in a currency transaction worth more than $10,000. However, there are exceptions which apply to some groups called “exempt persons”. These include: any bank in the United States; departments or agencies that fall under federal, state or local governments; any corporation whose stock is traded on the NYSE, Nasdaq and the American Stock Exchange (excluding stocks listed on the Emerging Company Marketplace and under the Nasdaq Small-Cap Issues heading).<\/p>\n

Thus, if you intend to make a currency transfer<\/strong><\/a> to the U.S. and your relative or spouse needs to withdraw the money to pay for something in cash, he\/she will be subject to CTR. The same rule applies to attempts to conduct a multiple cash transaction exceeding a daily cap of $10,000 (a process called “structuring”). Such structuring aimed at evading CTR reporting is prohibited by the law. Making a cash transaction in excess of $10,000 is not a violation of the law itself. Rather, the person who withdraws money will have to provide a valid ID regardless of his relations with the financial institution, i.e. even if he\/she does not have an account in it.<\/p>\n

Few are likely to regularly make currency transfers for such a large sum, but if you are among those few, then you must be informed about the existence of SAR. You may conduct multiple currency transfers to your spouse in the U.S. for sums close to but under the $10,000 threshold and he\/she can cash them in without any problems. However, these accounts and transactions will be subject to close monitoring by tellers and banks and at some stage they could decide to file a Suspicious Activity Report (SAR).<\/p>\n

So if you plan to send a currency transfer exceeding that sum to the United States, inform the recipient about these restrictions because a bank teller is not obliged to tell the customer that a CTR or SAR will be filed unless the client asks the question himself. The same or similar legislation is in force in all member states of the European Union and most European countries. It is important to know that in most cases it is not unlawful to conduct such transactions but a report will be filed with the respective government body.<\/p>\n","protected":false},"excerpt":{"rendered":"

Most developed countries have introduced legislation which poses restrictions on cash deposits or withdrawals or, alternatively, have subject these transactions to some kind of control. In the United States, if a person is trying to conduct such an operation with a financial institution and the sum is larger than $10,000,<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14126","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=14126"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14126\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=14126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=14126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=14126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}