International Money Transfer Over 10,000: Here’s What You Need To Know

If you need to send a large payment of over CA$10,000, you’ll want to know the best way to make your transfer to avoid excessive fees, and keep in line with the law. Maybe you’re buying a new holiday home overseas, and need to send a downpayment, or you’re transferring money to a family member who lives abroad. In either case, you want to know your money is safe, and your payment won’t cost any more than it has to.

This guide covers all you need to get started. We’ll look at sending and receiving large amounts of money, legal obligations to fulfill and how Wise can help with these transfers. Let’s get started.

Note: This article will focus on personal payments, rather than business transfers.

How can you send a large amount of money internationally?

Each transfer method has its own advantages and disadvantages, so doing a bit of research in advance is the best way to make sure you get the best for your needs. Here are some pointers to get you thinking.

Bank transfer

Bank transfers have been used for large transfers, owing to their reliability and familiarity. This, however, can come at the expense of

• fees charged by intermediary banks
• expensive exchange rates
• unnecessary delays

Cash

While carrying cash is a relatively simpler option, there are certain hurdles you might encounter, including

• risk of theft
• regulations around carrying cash into Canada or to your destination country
• expensive conversion rates and service fees charged by currency exchange services

Third party payment provider

A smart alternative is to look for a specialist provider such as Wise which can help you to send a direct bank transfer for a lower price than your regular bank. Modern online providers don’t have the overheads of brick and mortar banks, and often use newer ways to process payments which cut costs.

Make the most of your transfers with Wise

Wise can help move your money to a bank account abroad, without having to go through the SWIFT network. This helps you save on unexpected fees and exchange rates that could add to the expense of sending a large transfer.

If you’re wondering about exchange rates and currency conversion, it might assure you that Wise offers each customer the mid-market exchange rate, which is the halfway point between the highest and lowest rates used by banks to exchange currencies in millions.

All of this, with transfer fees starting at 0.48%^*. Wise does not charge you a fee you will not see beforehand, and offers transparent pay-as-you-use pricing. You can see a brief comparison of how much it would cost you to transfer 11,000 CAD to euros.

Your transfers are secure, thanks to the 2FA authentication and biometric verification used to confirm your identity with each transfer you make. Depending on how much you send, Wise might take extra verification steps to ensure that your money stays in good hands.

How much money can you bring into Canada?

Moving money in and out of Canada is covered under the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations, shortened to PCMLTFA. These rules are enforced by the Canadian Border services Agency, and FINTRAC.

Bringing cash or equivalents

If you enter Canada with 10,000 CAD or more in

• cash (in CAD or another currency)
• cheques
• travellers cheques
• bonds
• stocks

or other equivalents, it is important to declare the same to the Canada Border Servies Agency or CSBA .

Similarly, if you receive 10,000 CAD or more in cash in

• a single transaction or
• multiple transactions within 24 hours,

a large cash transaction report must be submitted to FINTRAC.

It’s perfectly legal to bring more money across the border - but it’s a crime if you fail to report that you’re doing so. You can report in person, by mail or have your courier report for you¹.

Receiving electronic transfers

If you receive an incoming electronic transfer of CA$10,000 or more, it will be reported to FINTRAC and the Canadian tax authorities. In this case, it’s the duty of the service provider - your bank or 3rd party provider for example - to complete all reporting requirements.

It’s worth noting that reporting is mandatory for individual payments of $10,000 or more, or if there are several payments which add up to $10,000 or more made in quick succession. This is to stop people from trying to circumvent the rules by making multiple smaller transfers, which add up to over $10,000.²

This rule also applies to any virtual currency transfers that might amount to the same value.

How much money can you take out of Canada?

The rules for taking money out of Canada are similar to those for bringing money into the country. If you’re taking $10,000 or more in cash or equivalents out of Canada, you’ll have to declare it when you are at the airport, by visiting the CBSA office before security. If you’re travelling by land, boat or rail, you’re required to visit the closest CBSA office to make your declaration before you leave¹.

In the case of electronic payments, your payment provider will make the necessary reports when you send $10,000 or more overseas². This will involve a report to FINTRAC and the CRA (Canada Revenue Agency), to guard against tax evasion. More on CRA reporting, below.

Do banks report deposits to CRA?

The CRA (Canada Revenue Agency) manages the collection of tax for the Canadian government and many provinces and territories³. Since 2015, all banks and 3rd party providers which handle international payments have had to report transfers of $10,000 or more to the CRA at the same time as they report to FINTRAC⁴.

There’s no need for individuals to do anything extra to make sure all payments made by electronic transfer are properly reported. This is the responsibility of the service provider. You’ll only need to report personally if you are carrying cash or equivalents in or out of the country, as outlined above.

Receiving money from abroad with Wise

You can not only send money with Wise, but you can also receive money in multiple currencies. You can receive money from over 150 countries in two different ways:

1. You receive the money in the same currency it is sent in, using the local account details you get with your Wise account. This avoids currency conversion altogether and you can choose to convert it to Canadian dollars, or spend that money like a local when you travel.

2. You receive the money in a currency which does not have account details on Wise. Not to worry! You still get the mid-market exchange rate with Wise, and receive the money into the main balance on your Wise account.

It is free to receive wire transfers Wise, except for incoming USD and CAD wire transfers.

What are the tax implications when you bring more than 10.000 into Canada?

Tax is always complex, and it might help to take professional advice if you’re not sure of how to comply with your duties and obligations.

In most cases, taking larger amounts of money in or out of Canada should pose no problems, as long as you’re transparent about reporting payments, and have properly filed and paid all your taxes.

There are fines for failing to report when you bring cash or equivalents in or out of Canada. You could find your money seized, and that you’re fined up to $5,000 to get your property back¹.

It’s also important to note that FINTRAC and CRA reporting is designed to stop criminal activity - including illegal tax evasion and aggressive tax avoidance². If you’re sending money out of Canada and have not properly declared it - if it’s income or capital gains for example - this will show up when your service provider reports the payment to CRA. The CRA will follow up and you’ll wind up with a tax bill, penalties or legal proceedings.

Similarly if you’re receiving a large windfall from overseas, it’ll be reported. If it is taxable for any reason, you can expect the CRA to know about it - check the rules and report payments to stay on the right side of the law.

You can make sure your cross border payments don’t cost more than they need to by selecting the best provider for your needs. Choose a currency service like Wise for safe, fast international payments, using the mid-market exchange rate.

Sources:

1. CRA - Travelling with CA$10,000 or more
2. About reporting for Electronic Funds Transfers
3. About the Canada Revenue Agency (CRA)
4. Electronic Funds Transfer reporting