Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What is the primary function of a CTR (Currency Transaction Report)?

1. To alert consumers about transaction fees

2. To report currency transactions exceeding a specified amount

3. To document all electronic transactions made by a client

4. To track suspicious activities in online banking

The correct answer is: To report currency transactions exceeding a specified amount

The primary function of a Currency Transaction Report (CTR) is to report currency transactions that exceed a specified amount, which is currently set at $10,000 in the United States. Financial institutions are required to file these reports with the Financial Crimes Enforcement Network (FinCEN) whenever a customer engages in a single transaction or multiple transactions that aggregate to above this threshold within a single day. This mandate exists to help authorities monitor large cash transactions that could be indicative of money laundering or other financial crimes. By capturing information on large cash transactions, regulators can identify patterns that may suggest illegal activities or financial fraud. In contrast, the other options pertain to different aspects of banking and financial monitoring. Alerting consumers about transaction fees doesn't relate to the reporting of transactions to regulatory bodies. Documenting all electronic transactions made by a client confuses the specific reporting focus of a CTR, as it does not include all transaction types or amounts. Tracking suspicious activities in online banking is more closely associated with Suspicious Activity Reports (SARs) rather than CTRs, focusing on unusual patterns rather than just large transactions.