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Depositing Large Amounts of Cash at the Bank

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Deal Addict
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Jan 18, 2008
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Depositing Large Amounts of Cash at the Bank

This has been bugging me as of late. I worked a lot of renovation jobs over the last year for cash and need to deposit the funds lest my house burn down one day(I don't believe it will, but you never know).
I heard from an acquaintance who's mother used to work in CIBC some 20+ years ago, that depositing amounts of $5000 or more in cash would net a call to the police since for some odd reason, they think it might be the proceeds of narcotics.

20 years is not too long ago, but am wondering if any of the 5 banks will give me trouble for depositing my money.
4 wheels move the body, 2 wheels move the soul.
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Oct 10, 2006
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http://www.fintrac-canafe.gc.ca/publica ... 07-eng.asp
Large Cash Transaction and Electronic Funds Transfer Reporting Requirements: Two Or More Transactions In A 24-Hour Period (The "24-Hour Rule")

Subsection 9(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Sections 3, 5, 17, 21, 35, 38, 40 and 47; and subsections 12(1), 24 (1) and 28(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations.

The purpose of this notice is to help clarify for reporting entities the measures they must undertake with respect to reporting two or more cash transactions or electronic funds transfers in a 24-hour period.
Reporting

Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, if you are a reporting entity, you have to submit a large cash transaction report (LCTR) to FINTRAC, when you receive an amount of $10,000 or more in cash1, from a client, in the course of a single transaction. Also, if you are a financial entity2, a money services business or a foreign exchange dealer, you have to submit an electronic funds transfer report (EFTR) to FINTRAC if you send or receive international electronic funds transfer (EFT) of $10,000 or more, made at the request of a client. An LCTR must be submitted within 15 calendar days of the transaction(s), while an EFTR must be submitted within 5 business days from the time the EFT is sent or received.
"24-Hour Rule"

You also have to make an LCTR or EFTR if you conduct two or more cash transactions or EFTs of less than $10,000 each within 24 consecutive hours of one another, that were made by or on behalf of the same individual or entity, and that add up to $10,000 or more. This is called the 24-hour rule.

The 24-hour rule applies if you as the reporting entity, your employee or senior officer know the transactions were made within 24 consecutive hours of each other, by or on behalf of the same individual or entity. It also applies only to transactions that are under $10,000. Where the amount of a single transaction is $10,000 or more, it is reportable as described above in the first paragraph.
Rolling or Static 24-Hour

The 24-hour period is a rolling 24-hour concept - in other words, the 24-hour period begins with each new transaction if you know the transactions were made by or on behalf of the same person or entity.

If because of your system limitations you only know of multiple transactions within a static 24-hour period (i.e. from 9:00 a.m. to 9:00 a.m. the next day) you are required to report the multiple transaction you are aware of in that 24-hour period.

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Dec 27, 2007
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Anything above $10,000 will require a questionnaire/form to be completed. You can be sure that any large, round-figured sum will be investigated by the bank's internal security, including $5,000. A series of transactions (deposits or withdrawals) will also trigger look-sees.

The primary purpose is anti-money laundering (of course). However, a secondary purpose (or side-effect, if you are less cynical) is tax evasion. As long as you are reporting this income, no worries. If you are evading taxes, you are better off staying off the grid.

Get a fireproof safe and lock up your case in the basement...
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Nov 14, 2006
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Deposits over $10k need to be reported to FINTRAC for anti-money laundering purposes...

Edit: oops 3weddings and bythehour beat me to the punch.
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May 14, 2008
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In English please? Ive been wondering about this too I do a lot of business online my accountant handles the money and gives it to me at a certain amount which i deposit. Ive always been making small deposits cause I heard something similar to what the OP heard. Ive had my share of problems with the banks already im 20 now but when i was 15 I walked in twice to deposit amounts over 3,000 and was referred to the bank manager who then questioned me and made me produce multiple forms of ID before depositing. I was extremely annoyed as I am of colour and im pretty sure if i was a white dude in a business suit he wouldn't have been giving me a hard time >.>

EDIT: THANKS for the explanation :)
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Oct 10, 2006
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Georgetown
Last week I had to deposit $7000 cash, and was actually asked for the withdrawal slip from my other bank and my ID (I have banked there for 15years!)....all part of the efforts against money laundering!

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Deal Guru
Feb 29, 2008
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bythehour wrote:
Jul 24th, 2008 12:38 pm

Get a fireproof safe and lock up your case in the basement...
Then 20 years later you get to try explain to the car dealer why you are trying to buy one with bills that don't King Harry's picture on them.
[OP]
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Jan 18, 2008
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Thanks for the link 3weddings.

3weddings wrote:
Jul 24th, 2008 12:46 pm
Last week I had to deposit $7000 cash, and was actually asked for the withdrawal slip from my other bank and my ID (I have banked there for 15years!)....all part of the efforts against money laundering!
15 years and they still hassle you? I'd take my business else where and watch them call my house 40 times in a month to get me back :twisted:
4 wheels move the body, 2 wheels move the soul.
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Oct 6, 2005
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DeimosBeros wrote:
Jul 24th, 2008 1:27 pm
15 years and they still hassle you? I'd take my business else where and watch them call my house 40 times in a month to get me back :twisted:
So true! Could be just the teller... I found most of the time the PBOs can be accommodating if you deal with a particular branch for a long time and if you're a good client.
Member
Aug 12, 2007
255 posts
Toronto/New York Cit…
Whatever bank that is, doesn't deserve your business.

The way I see it is, there's no problem if they report it to the government... as long as you have nothing to hide and have a paper trail. I've routinely deposited large amounts of cash in my bank accounts and haven't been hassled at all.
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Nov 16, 2004
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Crackb3rry wrote:
Jul 24th, 2008 12:44 pm
Ive had my share of problems with the banks already im 20 now but when i was 15 I walked in twice to deposit amounts over 3,000 and was referred to the bank manager who then questioned me and made me produce multiple forms of ID before depositing.
:eek:
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Jul 4, 2005
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DeimosBeros wrote:
Jul 24th, 2008 1:27 pm
Thanks for the link 3weddings.

15 years and they still hassle you? I'd take my business else where and watch them call my house 40 times in a month to get me back :twisted:
If it was up to the banks, they would take every dollar that comes through their doors ... money is money. But unfortunately, they have laws they have to follow and since 9/11 those laws have been multiplied by 10. Not only are the banks going through these anti-money laudering regulations, but also many other industries ... talk to your local real estate agent.

It's a new world we live in and I don't see it lightening up in the near future.
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Jan 27, 2004
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3weddings wrote:
Jul 24th, 2008 12:46 pm
Last week I had to deposit $7000 cash, and was actually asked for the withdrawal slip from my other bank and my ID (I have banked there for 15years!)....all part of the efforts against money laundering!
strange... they should only do that if its $10,000+
Otherwise they could discreetly fill out a unnusual transaction form if they really do feel that it is an unnusual transaction.

Otherwise... Most sensible tellers would let it go with a simple explaination, and a quick look through of your account history. (if you deposit $5000k once or twice a year, then year... It wouldnt be THAT unusual to have a large dep. once and a while).
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Deal Addict
Feb 9, 2005
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I recently sold my car and I split the deposits into amounts less than 10k. I don't recall the teller asking me a single question about my deposit of 9k.
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Jul 22, 2008
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AllWheelDrift wrote:
Jul 25th, 2008 12:12 pm
I recently sold my car and I split the deposits into amounts less than 10k. I don't recall the teller asking me a single question about my deposit of 9k.
Depositing the full amount is better, I think - several large deposits just under the 10k limit would attract attention. You'll show up as potentially trying to circumvent rules which just ends up with your accounts getting scrutinized even more closely.

To the OP: how much cash are we talking about here? I have no advice re. money laundering regulations besides what's already here, but make sure you are very careful when carrying a large amount of cash on your person. You may want to call the branch manager in advance to let them know you will be bringing a large amount of cash in so you don't have to pull it out in public.
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