sugarfus

Hi everyone!
My partner and I moved to Vancouver in 2014 and got PR last summer. We're ready to buy our first apartment here but are confused by the rules for transferring money to our canadian bank accounts. His savings are sitting with his bank in the UK, mine are in my German bank account. I know there's this $10,000 limit when arriving in the country by air, but I haven't found any information as to what's allowed as a PR specifically.

I'm unable to find any information online besides the bank's responsibility to report any incoming or outgoing transactions over $10,000 to prevent fraud/crime/etc.

Does anyone have any experience with moving large chunks of money over here? We're hoping to use our savings for the down payment and want to cover our bases to make sure we're doing this all the legal way to avoid any questions later down the road.

PMM

Hi

1. You can actually more than $10K when entering Canada, as long as you declare it to CBSA, there are no taxes or duties on money.
2. You can transfer as much as you want from overseas to Canada, the receiving institution does the reporting to FinTrac for you.
3. I assume that if you have more than $100K overseas, you have been reporting it on your Canadian income tax.

Collie

I don't think there's any problem moving large chunks of money over. We shifted several hundred thousand without problem. Though I imagine CRA might ask if the money was generating income when it was in Germany and the UK, and if so, where was it reported on your previous tax returns...

Pulaski

You have received good advice on this forum, to correct your misunderstanding. You have confused reporting of money movements with "limits" on moving money. You can move as much as you like - $millions if you have it, without restriction or taxes on the movement, but it will be reported to the government. If the money is yours and sourced from legitimate activity then you have nothing to worry about. In practice if you are moving money from the UK, Western Europe, Australia, or NZ then your money will be unlikely to have any shadow of suspicion over it.

The biggest mistake you can make at this stage is to start färting around with your money movements to try to evade the transfer reporting requirements because there is nothing more likely to provoke the customs and law enforcement agencies that monitor the proceeds of criminal activity than trying to avoid attracting their attention. To be bluntly clear: you will attract their attention, not avoid it, and the results may, at best, be a severe inconvenience to you - think "court hearings to get back control of your money".

sugarfus

So it's better for us to move the money over in one big chunk rather than individual smaller transactions? Most if it is going straight into our TFSA anyway

Collie

Yep!

Pulaski

Yes, absolutely, without a shadow of a doubt.

I also recommend that you tell your bank ahead of the money arriving to expect it, the amount, where (country and bank) it is coming from, and where you got it e.g. sale of house, accumulated savings, etc.

That said, there is nothing wrong with breaking a transfer into a few large sums (larger than the reporting threshold) if you want to average out exchange rates over a few months.

uk_grenada

If i have a new account esp when its all handled using details i submitted, i often move some tiny sum first - proof of details/concept, then go for it.

uk_grenada

Strangely in some situations cash gets better rates, i once went from london to the caribbean with a large bundle of us dollars in cash to fund a house. Certainly added a frisson to the journey, but it was all declared and just a few simple forms had to be completed.

I needed us dollars, and the big fx brokers couldnt compete with the big cash fx providers [indians all] in london on rates. Amazing places, their vaults must be a real worry...

BristolUK

Chained to wrist accompanied by a couple of smart but burly chaps in shades?

Pulaski

I would recommend against that these days, especially in the US and UK because of a law called "civil forfeiture" (I am not sure if there is a similar law in Canada, but it would surprise me if there isn't).

Basically, the customs or police can seize cash that they find and force you to go to court to prove that it is legally your money and that you got it by legal means. So you arrive in the country, you declare that you are carrying $100k, and get invited to discuss the money in a private office. The customs officers decide that you look shifty and relieve you of your $100k.

Another member of BE used to work as a police officer at Heathrow and confirms that such seizures actually took place. I know of cases in the US where money was seized under the US equivalent law.

PMM

Hi


1. Yes CBSA can seize funds over $10K that are not declared on either entry or exit.

uk_grenada

No, 250k in their original us wrappings, in a carry on bag. I did get a few curious looks from passengers when it was examined but the airport staff seemed used to it.

However on other occasions i have carried bacon curing salt. Anonymous looking Plastic bags filled with white powder, i always expect x-ray or someone to ask me, but its never happened.

uk_grenada

Its easy and safe, just follow the rules and declare it, you just carry the proof, bank statements showing youve had the cash forever or sale notes on personal investments. HMRC will tell you what they would prefer to see. Its just money laundering compliance. NB if airport staff decide not to accept what is the command of HMRC they put themselves at risk of court action from you. Their actions take place in public or with colleagues. If you suffer financially by them depriving you when you have supplied the required proofs, or they make the mistake of talking about confiscation in public, they have defamed you, and they have acted beyond their lawful remit. Slander, if documented in public - libel, consequential losses, a few other things... My fx supplier kindly supplied a document on how to proceed and what evidence you need to cash in - in a number of countries... One gets the feeling theyve been there.

When the jobsworths lose which they will if you have been compliant, they will pay for your replacement flights, any fx losses, business losses, damages etc.

uk_grenada

On a related note - anyone hear about the ford explorer door handles?

American detectives found the kit to cast metal door handles in a drug bust. It appears one route for money laundering was to cast gold door handles and trins and export them on cars, when they arrested the villains, they admitted that some had got lost. All over columbia, there are now ford explorers with scratched door handles :-)