A FAT Cheque

[StarvinStudent]

Will a hold be placed on a Bank Draft?

[gman]

ill tell you exactly what happens....

since you dont have a history of depositing large cheques, they will first question where you got the funds from, by law you have to declare it. then they will deposit the cheque and put atleast a 5 day hold on it (possibly longer, depends on your banks policy). Once the cheques gets encoded (as in the money is debited from the account its drawn on) a copy of the cheque will be faxed to the home branch of the account and they will verify the signature on the cheque to that of what they have on file for that account number. If it all matches, then the cheque will clear and the hold lifted... if it doesnt then the funds will be debited from your account (b4 the hold is lifted) and returned NSF.

By law, there is nothing to be declared unless it is a large cash deposit or a large international electronic fund transfer. Where you got the fund from?? Read the cheque. That tells you where the fund comes from.

http://www.fintrac.gc.ca/publication...06-04-07_e.asp

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.

[Drew_W]

Will a hold be placed on a Bank Draft?

Yes or no depending on the amount. All a draft is is a corporate cheque. If you get a large draft, get the business card of the manager/supervisor and give it with the draft so the depositing bank can call to verify so the hold is only a few hours instead of a week.