Electronic Funds Reports
An electronic funds transfer is the transmission through any electronic, magnetic or optical device, telephone instrument or computer, of instructions for the transfer of funds internationally. It does not include the withdrawal of cash from a recipient’s account, direct deposits or pre-authorized debits, cheque imaging and presentment, or the use of credit or debit cards. In the case of SWIFT transfers, only SWIFT 103 transfers are considered electronic funds transfers.
Certain reporting entities must report to FINTRAC when they receive instructions electronically for the transfer of $10,000 or more from outside Canada at the request of a client. No FINTRAC report is required if:
- The reporting entity receives the electronic funds transfer from a person or entity in Canada, even if the initial sender is outside of Canada.
- The reporting entity receives the electronic funds transfer for a beneficiary in Canada from another reporting entity, a financial entity or a money services business and the electronic funds transfer contains the name and address of the beneficiary.
The so-called ‘24 hour rule’ applies to electronic funds transfers except where it was sent at the request of a public body, a large corporation, or the administrator of a regulated pension fund.