"There may be similar Canadian banking or tax laws regarding the reporting of cash which may affect buying/selling bullion. I will see what I can find, and get back to you."
There is a CDN$10,000 rule (US$6500 ggggggg) but as to it's effectiveness, one could study this article,...
CIBC Wood Gundy's famous client settling with city
Canadian Imperial Bank of Commerce CM
Shares issued 408,226,026 Jun 11 close $52.70
Mon 11 Jun 2001 Street Wire
by Brent Mudry
The City of Vancouver has managed to recoup close to $189,000 of the funds
allegedly embezzled by former city treasurer Sandy Maddalena, who managed
to wire almost triple his $85,000 annual salary from the city's coffers to
his account at CIBC Wood Gundy in Toronto in just three weeks this spring
without ringing any anti-money laundering or know-your-client bells.
In court filings last week in the Supreme Court of British Columbia, the
City of Vancouver claims Mr. Maddalena is now "justly indebted" to the city
for $28,943, "after making all just discounts." The disclosure comes as the
city is pressing for judgment for $217,500 against Mr. Maddalena, the full
amount sought.
The former City of Vancouver treasurer is believed to be on the verge of
finalizing arrangements for asset transfers to the city which would bring
his amount owing down to zero.
Mr. Maddalena, the subject of a Vancouver Police Department criminal
investigation, has not yet been charged with any wrongdoing. If any when he
is formally charged, he will remain presumed innocent until proven guilty
beyond reasonable doubt.
While court documents offer no details or explanation of how the amount
outstanding has been reduced by 85 per cent to less than $29,000, this is
presumably mainly due to funds frozen in Mr. Maddalena's account at CIBC
Wood Gundy and any other conduits traced to date.
The fast-tracked "Rule 18A" application for a judgment hearing was
originally set for last Wednesday, but this was rescheduled for this
Monday. The whittled-down net tally owing of less than $29,000 is noted in
a garnishing order served on VanCity Trust Services, the trust division of
Vancouver-based VanCity Credit Union, Canada's largest credit union, where
Mr. Maddalena is believed to have an account.
Mr. Maddalena was fired on April 23 amid revelations he had managed to
divert about $112,000 of City of Vancouver funds from the city's main
operating account at Bank of Montreal in Vancouver to his personal
brokerage account at CIBC Wood Gundy in Toronto. The wire transfers, and in
fact the whole scheme, were notable for how unsophisticated they were, just
straightforward transfers from the city's account to Mr. Maddalena's
account.
The biggest of the four initial wire transfers was for $89,000 on March 30,
an amount which far exceeded the $10,000 limit for money-laundering
surveillance and should have caused at least one person to scratch his or
her head at CIBC Wood Gundy, given Mr. Maddalena's position as city
treasurer and his relatively modest salary.
While Canadian police are eager to crack down on the proliferating problem
of global money laundering, armed with controversial new and proposed
federal legislation, the uphill battle is demonstrated by the Maddalena
case, which apparently caught everyone asleep at the switch. Most
successful money-laundering operations show some level of sophistication in
a bid to fly under the radar or otherwise evade suspicion, but Mr.
Maddalena appears to have been surprisingly blatant in his alleged 21-day
personal enrichment scheme.
The day Mr. Maddalena was fired, the city discovered more than $105,000 in
additional diversions, through four wire transfers, each above the $10,000
threshhold. His scheme only fell apart Wood Gundy chided Bank of Montreal
for clerical sloppiness in a $2,500 wire, and Bank of Montreal promptly
alerted the city after two weeks.
Stockwatch subsequently revealed, the day after Mr. Maddalena was fired,
that he was a three-time bankrupt, a secret he apparently managed to keep
from both the City of Vancouver and his previous employer, the City of
Burnaby, neither of whom bothered to do even a cursory credit check on
their treasurer.
The Stockwatch story was filed as an exhibit in court in support of the
City of Vancouver's April 27 ex parte application for a court order
officially freezing all of Mr. Maddalena's assets and demanded a full sworn
affidavit listing all his accounts and assets, held either in his own name
or through nominees.
In early May, Mr. Maddalena won a revision to the asset disclosure order,
sealing the file from inspection by the Vancouver Police Department or the
Royal Canadian Mounted Police. The revised order bars the police from
obtaining copies of any documentary evidence, affidavit evidence,
transcripts of evidence or other evidence provided by Mr. Maddalena under
court order. This includes, "with full particularity," the nature of Mr.
Maddalena's assets, their exact location, value, bank accounts and funds
held in trust by his lawyers.
In a court-filed affidavit, defence lawyer Michael Sanders, who represents
Mr. Maddalena along with legal associate Michael Connaghan, notes that the
VPD is investigating his client for theft and fraud. "Any evidence he gives
will be conscripting the defendant to provide testimony which may be used
him in a Criminal Code proceeding," states Mr. Connaghan in the affidavit.
"The order being sought is to protect Mr. Maddalena's right to remain
silent as it applies to the Criminal Code investigation pursuant to Section
11(c) of the Charter of Rights and Freedoms. It is also my view that Mr.
Maddalena has the right to life, liberty and security of the person and the
right not to be deprived thereof except in accordance with the principles
of fundamental justices as guaranteed by Section 7," states the defence
lawyer.
While this order prevents Mr. Maddalena from having to assist police in the
criminal investigation against him, it will likely do little to hamper the
police probe, as the VPD or the RCMP will probably be able to get
everything they need by executing information requests or search warrants
on CIBC Wood Gundy in Toronto and Bank of Montreal in Vancouver. |
