Large Cash Transactions
The biggest problem for people trying to ‘launder’ criminal proceeds or terrorist financing is: How are they going to use the large amounts of ‘dirty’ cash they’ve been given, without attracting attention? If they can just get that cash into the legitimate economy without getting caught, they can send it through a maze of different bank accounts and companies so it looks ‘clean’. That’s why the legislation requires a number of sectors to report large cash transactions to FINTRAC.
Bottom Line Tip:
Make sure everyone in your firm who deals with buyers knows that any payment(s) of $10,000 or more in cash towards a sale must be reported to the government within 15 days. Consider establishing a company policy that you will not accept large cash payments.
NB: If someone gives you $10,000 or more in bearer cheques or other anonymous instruments towards a sale, or gives you a number of cash payments that seem designed to avoid the $10,000 reporting level, or starts to make this kind of large cash transaction but stops, that may trigger a Suspicious Transaction report. Click here for more details.
What counts as ‘cash’?
- ‘Cash’ means Canadian or foreign banknotes and/or coins.
- A ‘large cash transaction’ includes smaller cash payments if they add up to $10,000 or more and they were made within 24 hours of each other.
What do you have to do?
- record all cash transactions, including amount, currency, date and time, how the cash was received, and from whom, as described in the Receipt of Funds section
- decide how you will identify cash transactions that happen within 24 hours of each other, and how much they add up to
- make a ‘Large Cash Transaction’ report to FINTRAC whenever you receive $10,000 or more in banknotes and/or coins towards a sale within a 24-hour period
- keep a copy of the report(s) on file
Click here to go to FINTRAC’s web page showing sample Large Cash Transaction and Suspicious Transaction reports.
When do you have to report?
- Within 15 days of receiving the cash.
How do you file the report?
- electronically if you have a computer with an internet connection
- before you file your first report, you will need to call 1-866-346-8722, get a user ID and password, and then set up a user account online
- go to www.fintrac-canafe.gc.ca, then click on ‘FINTRAC Reporting’
- when filing a report, you have to fill in all the information spaces marked with an asterisk (*) that apply - the rest you only have to fill in if you have the information
- be sure to print or save a copy of your report from the website to keep on file
- Click here for more information
Do you have to stop dealing with the buyer?
The Act doesn’t require you to stop dealing with a buyer when you have reported or are planning to report a large cash transaction.
