Electronic Funds Transfer Reporting: Once Is Not Enough

On January 9, 2014, the Government of Canada announced draft legislative proposals (Proposals) that would require financial institutions, money services businesses and casinos subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PC Act) to report to the Canada Revenue Agency (CRA) international electronic funds transfers (EFTs) of C$10,000 or more sent or received at the request of a client. The proposed new reporting obligations are aimed at combatting international tax evasion and are in addition to the reporting requirements under the PC Act.

If enacted into legislation, the Proposals will require these businesses and institutions which are already subject to the PC Act, to file with the Minister of National Revenue information returns in respect of international EFTs of C$10,000 or more, in addition to the EFT reports these regulated entities are already required to submit to the Financial Transactions and Reports Analysis Centre of