Budget 2013 - International Electronic Funds Transfers

Notice to the reader

This measure has received Royal Assent.

Currently, certain financial intermediaries must report international electronic funds transfers (EFTs) of $10,000 or more to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Starting in 2015, the budget proposes that the same information for international EFTs be reported to the CRA for use in the administration of the Income Tax Act, Excise Tax Act, and the Excise Act, 2001.

What is considered an international electronic funds transfer (EFT)?

. An international electronic funds transfer means the transmission through any electronic, magnetic or optical device, telephone instrument or computer of instructions for the transfer of funds, other than transfer of funds within Canada. These transfers also include SWIFT MT 103 messages (SWIFT refers to the Society for Worldwide Interbank Financial Telecommunication, which is a co-operative owned by the international banking community that operates a global data processing system for the transmission of financial messages).

What financial intermediaries are required to report EFTs to FINTRAC?

Financial intermediaries that are currently required to report international EFTs to FINTRAC include banks, credit unions, caisses populaires, trust and loan companies, money services businesses and casinos.

What is the budget proposing for international EFTs?

Starting in 2015, the budget proposes that financial intermediaries report international EFTs of $10,000 or more to the CRA. This information will be used in the administration of the Income Tax Act, Excise Tax Act, and the Excise Act, 2001.

What will be done to reduce the burden imposed by this additional reporting obligation?

The new information reporting requirements will be the same as those that apply to existing reports provided to FINTRAC. The financial intermediary will simply be providing the same report to both FINTRAC and the CRA at the same time.

How will international EFTs be reported to the CRA?

Over the coming months, the CRA will be developing a streamlined approach for the electronic submission of these reports. Financial intermediaries subject to the new reporting requirements will be consulted during the development of this approach.

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