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Originally Posted by AllStar
Well since you are in Canada...yes if you pull 10k in a day it is considered a single transaction and the transaction has to be recorded however only by the bank into their own records. If they think it is suspicious they can forward it to the RCMP and they can investigate. In the US I believe the record is when there is a cash transaction of 6k however you can look it up.
This transaction is not sent to the IRS or Revenue Canada however if you ever do get an audit the tax man has is able to pull all records of your transactions from the banks. However most banks in Canada will not keep small transactions on record as does the US banks.
Remeber this Canadian banks are some of the biggest banks in the world. They make profits larger then most of the US banks and the reason is that Canadian banks launder money all over the world. So they have to take appropriate precautions in their overseas operations so it is like the old saying it takes a crook to know a crook.
If you hold your transactions to a few thousand a week there should be no reason for the bank to be alarmed.
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Unless it is something obviously criminal, the bank would not normally contact law enforcement (especially on possible tax issues where there is no hurry). There are mechanisms in place to montor fund movements and law enforcement are not the first stage. Obviously most transactions are fine and if there is a query, the bank may be asked for more information or enquries can down to the source of the funds.
Any transaction, irrespective of the bank (assuming Western banks), of $10K and above is automatically on a flagged list and not just with the bank, but with their central bank - and part of that is tied into auditing by the banking regulator. Banks *need* to be accountable to the central bank and the banking regulators - else bang goes their banking license. Can't say for Revenue Canada, but would be surprising if there was not a liasion on online monitoring with banking regulators/auditors. Law enforcement rarely come into the scenario on tax evasion (they rarely have a clue) - Revenue agencies have their own powers and agents for investigations.
Hehe.. don't tell Canadian banks that they "launder money all over the world" - they'd go into a permanent frenzy
Our lawyer arranged permits/license from the central bank/regulators here to kill the constant need to explain to the bank what the source of funds were (the bank knows very well what the funds are, but banking laws compel them to ask) and, if they have a query, we just fax the docs to the regulatory agency. It's not so much a tax issue (there are no taxes) but more to do with possible drugs blah activity.