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Tuesday, January 11, 2011

Declaring wire transfer cash to/from foreign country over $10k

I am aware we are suppose to report transfer of funds to other countries over $10000. When we wire cash, does the bank automatically report it?

I am in a situation where I used Citizen Bank (used to be a subsidy of Vancity Credit Union) but they went under. I used citizen bank to wire $30K - lending my funds to my relative in Hong Kong and I did not report it.


My relative is ready to return my cash but I dont know how the records will look like. Since Citizen Bank is no longer active, I will need to use another financial institute to receive the cash. Will the CRA be up in my case since I dont have proper record of lending the money out in the 1st place? 


Yes, the bank reports it. I can confirm as I work for a bank in the wire payments unit.
The reporting is not done manually. The banking system automatically identifies accounts with combined transactions of $10K or more per day. And reporting is nothing to be afraid of unless the source of your money is illegal or the money is used for sponsoring illegal activities. Combined transactions of more than $10k per day can consist of $2k withdrawal, $2k cheque deposit, $2k outgoing wire transfer, $2k internal transfer to another bank account, and $2k email transfer received into the account, all on the same day.

Even if your combined transactions per day is not more than $10k, your account may still be flagged and/or reported to the government if anyone in the bank from tellers to account internal audit people think your activities are suspicious.

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