Canada Issue Cross-Border Currency and Monetary Instruments Reporting Regs

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Wednesday, January 1, 2003
Bruce Zagaris
On November 26, 2002, the Canadian Cross-Border Currency and Monetary Instruments Reporting Regulations were published in the Canada Gazette and become effective January 6, 2003. These are the final set of regulations for the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTEA). The regulations require persons, including attorneys, to report the import or export of amounts over $10,000 of currency and Monetary instruments in bearer form, whether carried across the border or imported or exported by mail, courier or by any other means. No requirement exists to report bank drafts or cheques or other negotiable instruments made payable to a named person and which have not been endorsed. Persons do not have to report cross-border electronic funds transfers they make through banks (banks may report these EFTs). In mid-May 2002 an agreement between the Attorney General and the Federation on behalf of all provincial and territorial law societies exempted lawyers temporarily from the recording and reporting requirements imposed by Part 1 of the PCMLTFA with respect to both suspicious transactions and the requirement to establish a ?compliance regime? The exemption will be in place pending the ultimate resolution of the challenge in the courts. The B.C. Supreme Court has not set a date for the hearing on the merits, which originally was scheduled for June 24, 2002.