What is the threshold for financial institutions to file a Currency Transaction Report (CTR)?

Financial institutions are required to file a Currency Transaction Report (CTR) when a customer conducts a transaction involving more than $10,000 in cash. This threshold is established to help monitor and prevent money laundering and other financial crimes. Transactions that exceed this amount are significant in terms of cash flow and can raise suspicion about the source or purpose of the funds. Therefore, any cash transaction that meets or exceeds this $10,000 limit must be reported to the Internal Revenue Service (IRS) to ensure compliance with anti-money laundering regulations. Understanding this threshold is crucial for financial institutions to maintain proper reports and adhere to regulatory requirements.