What is required for any cash transaction over $10,000?

When a cash transaction exceeds $10,000, it is mandated by federal law that a Currency Transaction Report (CTR) is filed with the Financial Crimes Enforcement Network (FINCEN). This requirement is part of the Bank Secrecy Act, which is designed to combat money laundering and other illegal activities by monitoring substantial cash transactions. The purpose of this reporting is to create a transparent record of large cash movements, helping prevent the use of the financial system for illicit purposes.

Transactions below this threshold do not necessitate the same reporting, as they are considered below the administrative burden threshold. While the IRS certainly monitors financial transactions for tax purposes, it is not the only agency involved in overseeing such cash transactions; thus, other answers suggesting different agencies or a lack of action do not align with regulatory requirements. The specificity of reporting to FINCEN emphasizes the federal oversight of large cash transactions, highlighting the importance of compliance in maintaining the integrity of the financial system.