Money transfer of a non convertible currency from homeland to Canada

[Anis370]

Hello everyone,

Right off the bat, this topic will sound weird and even suspicious to those coming from countries with convertible currencies. Those coming from countries where the currency is non convertible can definitely relate to this sensitive issue.

I'm Algerian, finalized express entry and recieved PR cards for me and my spouse in 2019 on a soft landing and now planning to return and settle permanently in Canada. I bought a house with my hard earned money in Algeria after a decade of hard work to protect us from the ongoing inflation of the local non convertible DZD currency. I intend, 2 to 3 years after settling in Canada, to sell this house after it appreciates a bit in value to help finance purchasing another house for us to live in in Canada.

The question is how to transfer the proceeds knowing that Algerian authorities block any outgoing international money transfers! The only mean, that people are following here, around this adsurd rule is to find someone of trust in the country you need to transfer to, that person should have relatives in Algeria.. then you can hand in the money in local DZD to his relatives and he can hand you CAD or transfer to your bank account in Canada!

This doesn't break any rules in Algeria as the same amount of cash would still be circulating inside the country just with different hands.. i ran this by RBC bank in Toronto and they confirmed in writing that they will have no objection against recieving a large amount (could be 300000 CAD) in my account through direct deposit or local transfer as long as I'm keeping proof of the selling of the property in Algeria. I sent my concern to CRA but no reply after more than a year now!

Is anyone struggling in the same boat? What do you guys think? Is this 100% legal in Canada? What implications should I expect with CRA in this regard? Suggesting other ways to transfer non convertible currency to Canada would be appreciated. I'm looking to hear from those with past experience in the subject.

Again, this is a very sensitive topic, so any clear fraudulent attempts would be reported.

Stay safe
Anis

 

[PMM]

HI

Hello everyone,

Right off the bat, this topic will sound weird and even suspicious to those coming from countries with convertible currencies. Those coming from countries where the currency is non convertible can definitely relate to this sensitive issue.

I'm Algerian, finalized express entry and recieved PR cards for me and my spouse in 2019 on a soft landing and now planning to return and settle permanently in Canada. I bought a house with my hard earned money in Algeria after a decade of hard work to protect us from the ongoing inflation of the local non convertible DZD currency. I intend, 2 to 3 years after settling in Canada, to sell this house after it appreciates a bit in value to help finance purchasing another house for us to live in in Canada.

The question is how to transfer the proceeds knowing that Algerian authorities block any outgoing international money transfers! The only mean, that people are following here, around this adsurd rule is to find someone of trust in the country you need to transfer to, that person should have relatives in Algeria.. then you can hand in the money in local DZD to his relatives and he can hand you CAD or transfer to your bank account in Canada!

This doesn't break any rules in Algeria as the same amount of cash would still be circulating inside the country just with different hands.. i ran this by RBC bank in Toronto and they confirmed in writing that they will have no objection against recieving a large amount (could be 300000 CAD) in my account through direct deposit or local transfer as long as I'm keeping proof of the selling of the property in Algeria. I sent my concern to CRA but no reply after more than a year now!

Is anyone struggling in the same boat? What do you guys think? Is this 100% legal in Canada? What implications should I expect with CRA in this regard? Suggesting other ways to transfer non convertible currency to Canada would be appreciated. I'm looking to hear from those with past experience in the subject.

Again, this is a very sensitive topic, so any clear fraudulent attempts would be reported.

Stay safe
Anis

1, FinTrac would be informed of the deposit of greater than $10K by the bank. FinTrac is interested in funds obtained by crime or fraud, so keep lots of paper outlining how you came in possession of the funds.
2. For CRA you will need an evaluation of the property prior to "landing" and the difference when you sell it will have to be reported as a capital gain to CRA. Capital gains.

 

[Anis370]

Thanks PMM,

Didn't know about FinTrac before.. I'll definitely drop them an email for guidance and keep their answer in writing for future reference. I'll share it here to help others.

Regarding CRA, I take it that by "landing" you mean the day when we become permanent residents for tax purposes, not to be confused with PRs for immigration purposes. Being PRs for residential purposes is, by CRA's definition, when we return to settle in Canada for at least a year with no intention to leave establishing residential ties like employment, rent, bank accounts.. etc if so, than this will be the date of our return to Canada. Not the soft landing

 

[PMM]

HI

Thanks PMM,

Didn't know about FinTrac before.. I'll definitely drop them an email for guidance and keep their answer in writing for future reference. I'll share it here to help others.

Regarding CRA, I take it that by "landing" you mean the day when we become permanent residents for tax purposes, not to be confused with PRs for immigration purposes. Being PRs for residential purposes is, by CRA's definition, when we return to settle in Canada for at least a year with no intention to leave establishing residential ties like employment, rent, bank accounts.. etc if so, than this will be the date of our return to Canada. Not the soft landing

1. Yes the date you become a tax resident is the triggering event.