Money Question

C

champ

New member
Sep 7, 2001
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Toronto
I have come into a sum of cash. Just under six figures.

I now am in need of the "rules" of how to get the cash into the bank without raising any alarms.

What I mean by this is.

What are the laws or rules behind how much cash you can deposit at any one time?

I can be patient about this and do it over time, I just need to know how I should go about it.

Should I just deposit $1000.00 per day via the bank machine over several months?

If I deposit in 1K increments will this set off alarm bells over time?


What if I used my Visa for all living expenses ( bills , groceries etc ... ) and went into the bank and paid my Visa down with cash every month?

Any advice would be appreciated.

Champ
 
While I've never had this problem, a grand a day put into the banks would set off alarm bells IMO. All banks have fraud departments nowadays mainly for any fraudulent transactions, but a grand a day for 90 days is unusual, I'm not sure of the banks protocol for reporting this stuff.

The visa isn't a bad idea, get one that gives you points towards something, and maybe get a safety deposit box for the money.

In short I'm not sure if there is a link between the banks a CRA for suspicious deposits.
 
As it's none of my business, how did you come up with that lump sum of cash anyways ? If you have nothing to hide, I would say deposit it right away into your bank account and invest it or lock it into a savings account.
If they ask you where you got the funds from, you could say that you sold some jewelery for cash and so on.
Do not make the whole deposit all at once.

You could also make about a 20 k deposit and say that it was inheritance or you were given that money from your father and so.

DO NOT make a 1000 $ deposit daily through the machine. That will definitely get you in trouble..

Or , you could hand me the $$$ and i'll take care of it for you :D
 
I assume from your post you do not want to have to account for having this money by any legitimate means.

You could just dump the cash inta a safety deposit box and spend it in dribs and drabs over the next few years.

One other option would to buy gold. I don't know if you have to give name and address to buy gold at a Bank or not.. I know Scotiabank sells 1 ounce wafers, or you could buy gold Krugerrands , that are small, easy to hide and easily changed back into cash anywhere in the world.

If you want to get it into your bank where you can use it to buy a car, a house, etc, you'll have to find someone smarter than I on how to launder it.

If it was me, I'd spend it slowly, not bringing any attention to myself with flashy car, etc.. Hey, you can get laid a lot with that cash!

Good luck...
 
JohnFk is right, banks are obliged to report cash sums of $10,000 or more under new anti-money laundering rules. This is a per day figure. Just keep the amount below $10K/day as a deposit and you will be fine.
 
Sorry, saying it was an inheritance means you will have to pay tax on it.

I have to assume that a) you obtained this money legally and don't want to pay tax on it or b) you obtained this money illegally.

If it is B) anyone giving advice here on how to launder it might find themselves under the scrutiny of LE and might find themselves being charged with aiding and abetting.

If it is a) you could simply deposit it into a RRSP, GIC or another tax sheltered account and you'll be fine.

Either way what you're asking for here is how to break the law and this is against the terb rules.....
 
There are ways of "hiding" cash from the tax man... most of which I know nothing about...

Having said this, A1P's advice about paying cash for things is good advice. Now don't be silly and start buying big ticket items w/ cash- that will send up big red flags as well... Instead pay for everyday incidentals like groceries, clothing, entertainment, hobbying (duh!), car expenses, gasoline etc... That is stuff one would regularly pay for in cash anyway and it is next to impossible to track cash transactions.
 
If it's an inheritance, it is tax free in Canada. If the bank asks, just tell them that. They may want proof such as a probated will.

If it is not, take the advice above and pay cash for things.
 
Damondean said:
If it's an inheritance, it is tax free in Canada. If the bank asks, just tell them that. They may want proof such as a probated will.

If it is not, take the advice above and pay cash for things.
Click to expand...

I'm not 100% sure but I think it is only tax free if it is detailed in a will.

I seem to recall reading about wills and taxes and there was something in there where the feds can get their hands on it.......
 
Radio_Shack said:
JohnFk is right, banks are obliged to report cash sums of $10,000 or more under new anti-money laundering rules. This is a per day figure. Just keep the amount below $10K/day as a deposit and you will be fine.
Click to expand...

No you won't. Banks are required to disclose two things: Transactions above $10k and also they will report anyone who attempts to circumvent the $10k rule by dividing up into smaller transactions. Depositing $1k/day for an extended period of time will definately get some attention.

If you came by the money honestly why don't you just deposit it in one shot? It's not a big deal if they report it, assuming it really is your money, or is this part of some sort of tax evasion scheme?
 
fuji said:
No you won't. Banks are required to disclose two things: Transactions above $10k and also they will report anyone who attempts to circumvent the $10k rule by dividing up into smaller transactions. Depositing $1k/day for an extended period of time will definately get some attention.

If you came by the money honestly why don't you just deposit it in one shot? It's not a big deal if they report it, assuming it really is your money, or is this part of some sort of tax evasion scheme?
Click to expand...

I worked in a bank and was privey to how this works and they do not have any fancy way to track multi day transactions in the way you suggest. If there is a transaction of $10K or more they (the bank) actually have to file a form to register it. It is with these forms that they follow up to research to find out where the money came from. It is random in nature if they even bother to follow up. Anyways, thats how it works.
 
Why do you need to deposit it into a bank account?

If it's extra spending cash spend it on non-hard assets over time.

Otherwise Gold is good, but there is the risk of loss in value and exchange rate.

A small business allows you to funnel money also, cafe, restaurant, bingo hall...
 
tboy said:
Sorry, saying it was an inheritance means you will have to pay tax on it.
.....
Click to expand...

there is no inheritance tax in Canada- the deceased pays all taxes in the estate.
 
Radio_Shack said:
I worked in a bank and was privey to how this works
Click to expand...

I agree they don't work very hard to comply since they view it as meeting a regulatory requirement and not something that makes them money. You're right they probably won't report it, but if some account manager views his transaction history one day and notices the pattern they might well report it.

Thing is if it gets reported as cicumventing 10k then he will attract a lot of attention because that shows he is plainly hiding something.

If he REALLY wants to sneak it into the financial system I would suggest scattering it around over lots of different institutions in $1k amounts, not the same bank. Pay a CC one week, deposit into a bank the next, mutual fund the week after, another bank, another CC, another mutual fund, etc., so that there is no one institution that sees the big picture meanwhile pay cash for things where possible with the rest.
 
Danolo said:
I assume from your post you do not want to have to account for having this money by any legitimate means.

You could just dump the cash inta a safety deposit box and spend it in dribs and drabs over the next few years.

One other option would to buy gold. I don't know if you have to give name and address to buy gold at a Bank or not.. I know Scotiabank sells 1 ounce wafers, or you could buy gold Krugerrands , that are small, easy to hide and easily changed back into cash anywhere in the world.

If you want to get it into your bank where you can use it to buy a car, a house, etc, you'll have to find someone smarter than I on how to launder it.

If it was me, I'd spend it slowly, not bringing any attention to myself with flashy car, etc.. Hey, you can get laid a lot with that cash!

Good luck...
Click to expand...

You will need ID or an account at Scotia to buy gold coins. Other coin dealers may or may not.
 
tboy said:
Sorry, saying it was an inheritance means you will have to pay tax on it.

I have to assume that a) you obtained this money legally and don't want to pay tax on it or b) you obtained this money illegally.

If it is B) anyone giving advice here on how to launder it might find themselves under the scrutiny of LE and might find themselves being charged with aiding and abetting.

If it is a) you could simply deposit it into a RRSP, GIC or another tax sheltered account and you'll be fine.

Either way what you're asking for here is how to break the law and this is against the terb rules.....
Click to expand...

Valid points. In no way am I stating that it is ok to launder money. Some years ago a friend of mine and his parents were cleaning out his Great Uncles house after he had passed away. In a box in the basement, they found thousands of dollars in cash. It turns out this gentleman never even had a bank account. After living through the Great Depression he just did not trust them, though the money was safer in his possession.
 
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