Hi people, can you help?

I'm thinking about buying a place in the UK and would need to transfer money from Canada to the UK. I have heard/read about the $10,000 limit before there has to be 'reporting' or declaring of the money the customs people. I'm planning on transferring much more than 10 grand from my Canadian bank account to a friend's bank account in Canada and then have him wire/transfer/whatever the money on to me here in the UK (I can't get back to Canada myself at this time). I'm just wondering how does the 'reporting' or 'declaring' of this transfer of funds work? Do I report it? Does my friend? Does the bank or currency brokerage?

Bit confused!

I believe that reporting requirements only matter if you bring money with you (e.g. travellers cheques or cash). But for bank-to-bank transfers, your friend might find themselves reported to the tax authorities if a big sum of money appears in their bank account all of a sudden.

Although I have not used them myself, I've heard good things about www.xe.com . Now I admit that I don't know anyone who has used them to transfer the kind of money you're talking about. I've heard of Americans and Canadians using www.xe.com to send deposits to Kenya- or Tanzania-based safari operators, for example. The amounts involved have been in the thousands of dollars, but probably under $10,000. Still, it may be worth investigating the feasibility of using that service, or a similar one, in your situation.

I share MarkG's reservation. Although I'm not an accountant, I worry that your friend will find himself/herself having to explain that he/she has not earned that money as income and that he/she does not have to pay tax on it.

Thank you Mark and Judy for your replies.

I do understand what you're saying about creating blips on the taxman's or whomever else's radar. This is why I'm trying to find out to 'report' or whatever this transaction - to prevent any bother.

I'll keep on searching!

AFAIK the $10000 limit for 'reporting' shouldnt stop you transferring funds. Its all to do with money laundering legislation and I think banks in the UK have a similar requirement. Just because you are reporting a transaction doesnt mean that you have to pay tax on it for example.

I've just completed the registration process for xe.com. Not used it yet so cant vouch for the service. They are thorough in the vetting process!

Do you have to report money leaving Canada? I thought the only people who'd be interested in that would be the country where you're importing the money to. I think the UK has similar requirements though - you should tell them anything over 10k GBP and be able to prove how you got it.

Having said that, I posted a large draft to my bank in Canada, enough for half a condo, before I knew I should be declaring it. Just mailed it off, no customs declaration or anything. Nothing happened. They deposited it. I spent it. I suppose some background checks may have been triggered by the bank but I certainly wasn't asked to explain anything.

And when we brought >10k in recently the customs guys couldn't have cared less. There was me with copies of the house sale docs to prove how we got the money, ready to defend myself. Nothing. Not interested at all.

Good luck, and happy house hunting!

Biiiiink

Hi

According to CBSA you have to report import and export, see: http://www.cbsa-asfc.gc.ca/newsroom/...porting-e.html

PMM

]

Ok, so I read that as clearly if you turn up at the border with a suitcase full of cash or bankers draft, bearer bonds or similar such piece of paper for more than $10k then you would report it to CBSA as you clear Customs. However what about when you are transferring funds electronically say between a bank in UK and one in Canada. Does the bank report it to CBSA, or do you have too and if so how do you go about it?!

Yes, that's exactly what I'm trying to figure out.

From the link given above I found this:

"12. Do I need to report electronic transactions (e.g. wire transfers) to the CBSA?

Only physical movements of currency and monetary instruments need to be reported to Customs."
( specifically on this page: http://www.cbsa-asfc.gc.ca/general/cmr/faq-e.html )

So I would think no, the CBSA isn't concerned with money wires (which is what I'm asking about - and you too?), they're concerned with briefcases full of 100 dollar bills.

What I'm thinking at this moment, with the info I've read so far, is that it is the obligation of 'financial entities' (institutions, banks) to report any 'suspicious financial transactions' to FINTRAC (The Financial Transactions and Reports Analysis Centre of Canada - http://www.fintrac.gc.ca/). What is deemed suspicious is apparently described here: http://www.fintrac.gc.ca/publication...Guide2/2_e.asp I haven't read all of it.

Still trying to sort it out...

Thanks for the link - I think it helped clarify part of my question. It seems you only have to declare the physical movement of money (over 10 grand) over the border to the CBSA. (At least that's what I'm thinking.)

Don't you hate that? Spending a lot of time and energy assembling info, docs, etc... to 'argue your case'. making sure everything's clear and watertight and it's just brushed off as 'yeah, whatever... next'. OOooo, that bugs me... "look here buddy... you're gonna look at my proof whatever you need to or not..." (get dragged away by a friend before I create a scene) . I pity the poor caseworker who has my application at the Home Office - a four page covering letter and thick pile of documents .

Hi, AFAIK, only the physical movement of cash and cash equivalents (bonds, and negotiable instruments) and, maybe gold, diamonds etc over £10,000 that has to be declared, all electronic transactions, whatever the size, will be declared automatically by the bank.

Dozzzzy

Geez Dozzzzy, you could have tossed me this nugget of info about 30 hours ago, ya know! Thanks though, it confirms what I've been reading.

Aye but all that info could be very useful in other ways...occasionally mortgage brokers/banks/lenders have to run random checks (and otherwise) to prove legitimacy of funds also under the anti-money laundering regs.

Our broker certainly provided good advice of exactly what doc's to bring over.

Rich. (who will be hauling carry case of laptop + hundreds of assorted papers and documents through airpots in the UK and Canada sometime soon. Herself will carry important stuff like $, handbag and spare shoes ).