What is considered a "large cash transaction" under the BSA?

Under the Bank Secrecy Act (BSA), a "large cash transaction" is defined as any transaction involving more than $10,000. The BSA established this threshold to cultivate transparency in financial transactions and ensure that significant cash exchanges are reported to help prevent money laundering and other financial crimes. Transactions over this amount must be reported as Currency Transaction Reports (CTRs) by banks and financial institutions to the Financial Crimes Enforcement Network (FinCEN).

This reporting requirement is crucial because large cash transactions can be indicative of illicit activities, such as tax evasion or drug trafficking. By setting the limit at $10,000, regulators aim to monitor substantial cash flows that might otherwise go unnoticed, thereby enhancing the ability to detect and investigate potential illegal activities. The other amounts mentioned do not align with the BSA's definition, as transactions above those thresholds do not constitute "large cash transactions" under this specific regulation.