Economic Action Plan 2014 – Legislative Changes Relevant To Financial Institutions And Money Services Businesses

On June 19, Economic Action Plan 2014 Act, No 1, which implements certain provisions of the 2014 Federal Budget, was passed by the Government of Canada. This legislation is also known as Bill C-31. This Legal update highlights certain changes that will be of interest to financial institutions and money services businesses.

ITA amendments will require reporting of international EFTs of $10,000 or more

There is a new definition of reporting entities in the Income Tax Act (Canada) (ITA), which includes federally and provincially regulated financial institutions, credit unions and money services businesses. Reporting entities will be required to file with the Canada Revenue Agency an information return (the form of which will be prescribed by regulation) in respect of every electronic funds transfer (EFT) of $10,000 or more that is sent outside Canada or received from outside Canada at the request of a client of the reporting entity. This new reporting requirement