Electronic funds transfers

If you are a financial entity, a money services business or a casino, you will have to report certain electronic funds transfers (EFTs) to FINTRAC.

Please note that as of January 1st, 2015, all EFT reporting will be done through a Shared Reporting Process that allows reporting of EFTs simultaneously to both FINTRAC and the CRA.

SWIFT electronic funds transfers

This reporting requirement is only applicable to you if you are a financial entity or a money services business and you send or receive EFTs made at the request of a client by transmission of a SWIFT MT 103 message, as a SWIFT member, through the SWIFT network. SWIFT means the Society for Worldwide Interbank Financial Telecommunication. It is a co-operative owned by the international banking community that operates a global data processing system for the transmission of financial messages.

You have to report the following transactions to FINTRAC:

You send an outgoing SWIFT MT 103 message for $10,000 or more outside Canada at the request of a client in the following manner:

  • in a single transaction; or
  • in two or more transfers of less than $10,000 (that total $10,000 or more) if your employee or senior officer knows they were made within 24 consecutive hours of each other by or on behalf of the same individual or entity (24-hour rule).

You receive an incoming SWIFT MT 103 message for $10,000 or more sent from outside Canada at the request of a client in the following manner:

  • in a single transaction; or
  • in two or more transfers of less than $10,000 (that total $10,000 or more) if your employee or senior officer knows they were made within 24 consecutive hours of each other by or on behalf of the same individual or entity (24-hour rule).

These reports can only be made electronically using the batch file reporting mechanism (See Guideline 8B: Submitting SWIFT Electronic Funds Transfer Reports to FINTRAC).

You do not have to make an EFT report if you send a transfer to an individual or an entity in Canada, even if the final recipient is outside Canada. Similarly, you do not have to make an EFT report if you receive a transfer from an individual or an entity in Canada, even if the original sender was outside Canada.

Guidance on Tag :50: (Ordering Customer)
of the SWIFT Electronic Funds Transfer Report

As per paragraphs 12(1)(b) and 12(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing (PCMLTF) Regulations, financial entities are required to report the sending out of Canada and the receipt from outside Canada, at the request of a client, of an electronic funds transfer (EFT) of $10,000 or more in the course of a single transaction. This report must contain, among other things, the following information on the client ordering the payment of the EFT (i.e., tag :50:) referred to in Schedules 2 and 3 of the PCMLTF Regulations:

  1. Client's full name;
  2. Client's full address;
  3. Client's account number, if applicable.

Although the Society for Worldwide Interbank Financial Telecommunication (SWIFT) allows its members to choose between three options to fill out tag :50:, i.e., options A, F and K, only options F and K do provide the information that is mandatory for these reports.

Given option F can also contain information that is not set out in Schedules 2 and 3, if your financial entity sends out or receives a MT 103 message in which option F was used, we recommend that you follow these guidelines when providing information to FINTRAC:

  1. When subfield 1 (Party Identifier) is used with the (Code)(Identifier) format, you should provide one of the following codes followed by the "/" character:

    ARNU
    Alien Registration Number
    CCPT
    Passport Number
    CUST
    Customer Identification Number
    DRLC
    Driver's License Number
    EMPL
    Employer Number
    IBEI
    International Business Entity Identifier (no country code allowed)
    NIDN
    National Identity Number
    SOSE
    Social Security Number
    TXID
    Tax Identification Number
    CORP
    Corporate Identification, that is, Identification Number of the Customer in a Corporation:
    OTHR
    Other identification

    However, DO NOT provide the values that follow the "/"" character. Please space-fill the remainder of the tag.

  2. For subfield 2 (Name & Address), you should only provide the following codes on the lines:

    • Name of the ordering customer

      The number followed by a slash, '/' must be followed by the name of the ordering customer (where it is recommended that the surname precedes given name(s)).

    • Address Line

      The number followed by a slash, '/' must be followed by an Address Line (Address Line can be used to provide for example, street name and number, or building name).

    • Country and Town

      The number followed by a slash, '/' must be followed by the ISO country code, a slash '/' and Town (Town can be complemented by postal code (for example zip), country subdivision (for example state, province, or county).

    DO NOT provide other codes such as:

    • Date of Birth

      The number followed by a slash, '/' must be followed by the Date of Birth in the YYYYMMDD format.

    • Place of Birth

      The number followed by a slash, '/' must be followed by the ISO country code, a slash '/' and the Place of Birth.

    • Customer Identification Number

      The number followed by a slash, '/' must be followed by the ISO country code, a slash, '/', the issuer of the number, a slash, '/' and the Customer Identification Number.

    • National Identity Number

      The number followed by a slash, '/' must be followed by the ISO country code, a slash, '/' and the National Identity Number.

    • Additional Information

      The number followed by a slash, '/' is followed by information completing the Identifier provided in subfield 1 (Party Identifier) used with the (Code)(Identifier) format.

Example 1 - Alien Registration Number

If you receive the following SWIFT message:

:50F:ARNU/XR123414
1/JOHN SMITH
2/123 MAIN STREET
4/19640829
5/DE/FRANKFURT

You should provide the aforementioned message to FINTRAC in the following format:

:50K:ARNU/
1/JOHN SMITH
2/123 MAIN STREET

Example 2 - Passport

If you receive the following SWIFT message:

:50F:CCPT/GB/123456789012345
1/JOHN SMITH
2/123 MAIN STREET
3/GB/LIVERPOOL

You should provide the aforementioned message to FINTRAC in the following format:

:50K:CCPT/
1/JOHN SMITH
2/123 MAIN STREET
3/GB/LIVERPOOL

Example 3 - National Identifier

If you receive the following SWIFT message:

:50F:NIDN/SE/1234567890124567
1/JOHN SMITH
2/123 MAIN STREET
7/SE/1234567890124567

You should provide the aforementioned message to FINTRAC in the following format:

:50K:NIDN/
1/JOHN SMITH
2/123 MAIN STREET

Your reporting obligations regarding EFTs also include sending or receiving EFTs by any means, as explained in the following.

Non-SWIFT electronic funds transfers

This reporting covers EFTs that are the transmission of instructions for a transfer of funds through any electronic, magnetic or optical device, telephone instrument or computer other than SWIFT MT 103 messages described above.

If you are a financial entity, a money services business or a casino, you have to send a report to FINTRAC for the following transactions:

  • You send outgoing EFTs. These are instructions sent electronically for the transfer of $10,000 or more outside Canada at the request of a client in the following manner:
    • in a single transaction;
    • in two or more transfers of less than $10,000 (that total $10,000 or more) in the following 24-hour rule situations:
      • if you are an entity, your employee or senior officer knows the transfers were made within 24 consecutive hours of each other by or on behalf of the same individual or entity; or
      • if you are an individual, you know the transfers were made within 24 consecutive hours of each other by or on behalf of the same individual or entity.
  • You receive incoming EFTs. These are instructions sent electronically for transfer of $10,000 or more from outside Canada at the request of a client in the following manner:
    • in a single transaction;
    • in two or more transfers of less than $10,000 (that total $10,000 or more) in the following 24-hour rule situations:
      • if you are an entity, your employee or senior officer knows the transfers were made within 24 consecutive hours of each other by or on behalf of the same individual or entity; or
      • if you are an individual, you know the transfers were made within 24 consecutive hours of each other by or on behalf of the same individual or entity.

Reporting EFTs under the Shared Reporting Process

Why Will Reports Be Sent To The CRA?

  • In the 2013 Budget, the Government of Canada announced measures to strengthen the ability of the Canada Revenue Agency (CRA) to combat international aggressive tax avoidance and international tax evasion. One of those measures called for the reporting of international electronic funds transfers (EFTs) of $10,000 or more to the CRA, for use in the administration of the Income Tax Act, Excise Tax Act, and the Excise Act, 2001. Starting on January 1st, 2015, reporting entities that currently have an obligation to report EFTs to FINTRAC under the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA) will also be reporting to the CRA when they report EFTs using the Shared Reporting Process.

Shared Reporting Process

  • WHAT IS THE SHARED REPORTING PROCESS?
    The Shared Reporting Process will allow reporting entities to send Electronic Funds Transfers (EFT) reports simultaneously to both FINTRAC and to the CRA.
  • WHY WAS THIS PROCESS DEVELOPED?
    Because reporting obligations are the same under the PCMLTFA and the ITA, FINTRAC and the CRA worked together to develop this process to reduce the burden on entities that have existing obligations to report Electronic Funds Transfers (EFT).
  • WHAT IS FINTRAC'S ROLE?
    FINTRAC will continue to manage the existing reporting channels, and will still provide user support for reporting entities. Users will still enroll only with FINTRAC for both the Web application and for the use of the batch reporting software.

Reporting obligations

  • WILL MY REPORTING OBLIGATIONS TO FINTRAC CHANGE?
    Reporting Entities' obligations will remain the same. All REs will have to send the same EFT reports to FINTRAC as before; those EFT reports will also be sent to the CRA through this process. This reporting is done through the creation of a new shared component of existing reporting channels (F2R and batch reporting).
  • ARE OTHER REPORTS AFFECTED?  
    There will be no change to any other report type submitted to FINTRAC. Only EFTRs will be part of the Shared Reporting Process.
  • WHAT ABOUT REPORTING ON PAPER?  
    If you do not have the technical capability to report EFTs electronically, you may use FINTRAC's paper form to report. However, EFTRs submitted on paper will not be sent to the CRA. You must fill out the CRA's own form (see link below) to report EFTs to the CRA on paper. 
  • WILL THE CRA BE GETTING MORE INFORMATION THROUGH THIS PROCESS?
    No. The CRA will not receive other reports through the Shared Reporting Process. It should also be noted that the CRA will not have access to FINTRAC's database or other information through the SRP.

Where can I find out more about what the CRA is doing with the information?

Additional information about electronic funds transfers

There is an exception to the 24-hour rule explained above for an EFT with more than one beneficiary. For additional information about this as well as timeframes, means of reporting, EFTs in foreign currency and other requirements associated with EFTs, consult Guideline 8: Submitting Electronic Funds Transfer Reports to FINTRAC.

Date Modified: