What is the maximum threshold for cash transactions before they must be reported under the BSA?

What is the maximum threshold for cash transactions before they must be reported under the BSA?

• A. Limitless
• B. 10,000 USD
• C. 5,000 USD
• D. 1,000 USD

Answer: (B)

The maximum threshold for cash transactions that must be reported under the Bank Secrecy Act (BSA) is indeed $10,000. This requirement applies to cash transactions, whether they are deposits, withdrawals, or payments, conducted by or on behalf of a customer. Financial institutions must file a Currency Transaction Report (CTR) with the Financial Crimes Enforcement Network (FinCEN) for any single transaction or a series of related transactions that exceed this threshold within a single business day. This reporting threshold is critical for helping authorities track and prevent money laundering and other financial crimes, as cash transactions can often be linked to illicit activities. Understanding this threshold is essential for compliance officers and other personnel within financial institutions to ensure that they are meeting regulatory obligations.

The maximum threshold for cash transactions that must be reported under the Bank Secrecy Act (BSA) is indeed $10,000. This requirement applies to cash transactions, whether they are deposits, withdrawals, or payments, conducted by or on behalf of a customer. Financial institutions must file a Currency Transaction Report (CTR) with the Financial Crimes Enforcement Network (FinCEN) for any single transaction or a series of related transactions that exceed this threshold within a single business day.

This reporting threshold is critical for helping authorities track and prevent money laundering and other financial crimes, as cash transactions can often be linked to illicit activities. Understanding this threshold is essential for compliance officers and other personnel within financial institutions to ensure that they are meeting regulatory obligations.