Section 5: Module 5: Cross-Border Currency Reporting
5.5 Module Five: Cross-Border Currency Reporting
1. Core Definitions
1.1 Cross-Border Currency Reporting
Definition
The requirement to report the importation or exportation of currency or monetary instruments equal to or greater than CAD $10,000 across the Canadian border.
1.2 Monetary Instruments
Definition
Negotiable financial instruments that can be transported across borders.
Examples
Cash
Traveller’s cheques
Stocks
Bonds
Certain negotiable instruments
1.3 CBSA
Definition
The Canada Border Services Agency, the organization responsible for receiving cross-border currency reports and enforcing reporting requirements.
2. Core Concepts
2.1 Bringing Money Across Borders is Legal
A common misconception is that taking large amounts of money across Canada’s borders is illegal.
Important Rule
There is:
No restriction on the amount of money you can bring into Canada.
No restriction on the amount of money you can take out of Canada.
The obligation is to report, not to seek permission.
2.2 Reporting Threshold
Cross-border reporting is required when currency or monetary instruments equal or exceed:
CAD $10,000
This threshold applies to:
Individuals
Businesses
Couriers
Armoured car companies
3. Purpose of Cross-Border Reporting
Cross-border reporting helps CBSA:
Investigate money laundering offences.
Investigate terrorist financing offences.
Combat organized crime.
Fulfill Canada’s international commitments against transnational crime.
4. Reporting Methods
There are four primary methods for transporting currency or monetary instruments across Canada’s borders. Each has different reporting requirements.
4.1 By Person
When entering or leaving Canada carrying CAD $10,000 or more:
Form Required
Form E677
Cross-Border Currency or Monetary Instruments Report – Individual
Special Rule
If the funds are not your own:
Form E667
Cross-Border Currency or Monetary Instruments Report – General
must also be completed.
4.2 By Mail
When mailing CAD $10,000 or more into or out of Canada:
Form Required
Form E667
Additional requirements may apply through postal regulations.
4.3 By Courier
When using a courier:
Forms Required
Form E667
Completed by importer/exporter
Form E668
Completed by the person in charge of the conveyance
Both forms must be submitted to CBSA.
4.4 Public Transportation
The same courier/conveyance reporting process applies when funds are transported by:
Aircraft
Train
Bus
Other public transportation methods
5. Reporting Forms
Form E677
Used when an individual personally carries reportable currency or monetary instruments across the border.
Form E667
General reporting form used for mailed shipments and situations where the funds do not belong to the individual transporting them.
Form E668
Completed by the person in charge of the conveyance when transported by courier or public transportation.
6. 2020 Reporting Changes
Additional Information Required
Reporting forms were expanded to clarify:
Original foreign currency amounts.
Canadian dollar equivalents.
Travel dates.
Transit points.
Ultimate origin of funds.
Ultimate destination of funds.
Names and addresses of relevant parties.
Courier and intermediary information.
Purpose
To improve transparency and strengthen Canada’s ability to identify suspicious cross-border currency movements.
7. What Happens After Reporting?
Completed reports are sent to:
FINTRAC
for assessment and analysis.
Information collected is subject to:
Privacy Act protections
PCMLTFA authorities
8. Penalties for Non-Compliance
Failure to Report
Currency or monetary instruments equal to or greater than CAD $10,000 may be:
Seized
Subject to penalties
Subject to forfeiture
Administrative Penalties
First-Time Offender
5% of undeclared funds
Maximum penalty of $2,500
Applies when full disclosure is made and funds were not concealed
Concealment or False Declaration
25% of undeclared funds
Serious Concealment
50% of undeclared funds
Examples include:
False compartments
Repeat concealment violations
Repeat false declarations
General Penalty Range
Penalties may range from:
$250 to $5,000 plus potential forfeiture.
9. Real-World Examples
The module provides several examples showing:
Drug Smuggling
CBSA seizures involving:
Cocaine
Opium
Steroids
Marijuana seeds
using:
Commercial aircraft
Postal packages
Marine containers
Concealed compartments
Undeclared Currency
Examples include:
$107,000 seized at Niagara crossings.
US$458,140 hidden in a vehicle compartment.
US$477,000 concealed in a horse trailer.
Approximately $1 million in undeclared gold and currency at a border crossing.
Key Lesson
Criminal organizations frequently move proceeds of crime across borders to integrate funds into the legitimate economy. Cross-border reporting helps identify and disrupt these activities.
10. Key Takeaways
10.1 Most Important Number
CAD $10,000
The reporting threshold for cross-border currency and monetary instruments.
10.2 Reporting is Required, Not Permission
Moving large amounts of money across the border is legal.
Failing to report is the problem.
10.3 Know the Forms
Form | Purpose |
|---|---|
E677 | Individual carrying funds |
E667 | General reporting form |
E668 | Person in charge of conveyance |
10.4 Four Transportation Methods
By person
By mail
By courier
By public transportation
10.5 High-Value Exam Concepts
The concepts I would expect CAMLI to test are:
CAD $10,000 threshold.
Reporting is required for imports and exports.
Reporting is made to CBSA.
Funds can be carried legally if reported.
E677 = individual.
E667 = general reporting.
E668 = conveyance reporting.
Four transportation methods.
Reports are ultimately sent to FINTRAC.
Failure to report may result in seizure and penalties.
This module is lighter than LCTR and STR reporting. The exam focus is likely to be the $10,000 threshold, reporting obligation, CBSA role, and the three reporting forms, rather than the historical case studies.