How to transfer large sums of money to and from Canada

Whenever you send money domestically or abroad, knowing how to transfer large sums of money securely is important to avoid fraud or other security issues. Whether you’re transferring large sums of money for rent, a mortgage payment, or to purchase something overseas, you need to know that your money is in good hands.

To transfer a large amount of money between banks, there are a few helpful tips to ensure the process goes smoothly. Keep reading to learn what you need to initiate a transfer and the different international transfer options best suited to your needs.

 Factors to consider when transferring large sums of money

In monetary terms, a “large amount” is defined differently depending on the method for sending money, so check with your financial institution about limits.

Before transferring large sums of money between bank accounts, consider these factors:

 Exchange rates

When sending money internationally, always check the current exchange rates. Exchange rates affect how much money your recipient will receive in their local currency.

This is important to note as you will need to consider the amount of money that your recipient is requesting.

 Fees and taxes

Depending on where you are transferring large sums of money to, you may have to pay transfer fees or taxes. These charges depend on where you are sending money to and from, the method you are using to send the money, and any specific fees from both sending and receiving banks.

Before sending, it’s a good idea to determine all the possible fees and how they may vary depending on the above factors. Possible fees may include:

• Transaction fees: This is the baseline fee for transferring money, which can change depending on whether it’s a domestic or international transfer.
• Receiving fees: Some financial institutions charge receiving fees. Check with the financial institution before initiating a transfer to see if they charge, and if so, how much.
• Intermediary fees: If an intermediary bank is involved in the transfer, they may charge an additional fee.
• Correspondent bank fees: Some overseas banks may change processing fees, which are deducted from the amount you are transferring.
• Cancellation fees: If you cancel a transfer, you may be subject to cancellation fees depending on the terms set by the financial institution.

In Canada, you won’t need to pay gift or income tax on most types of money transfers from friends or family. However, if you’re sending or receiving money related to the sale of an asset, you may need to pay capital gains tax.

Security and regulations

Before transferring large sums of money, you need to make sure that the financial institution you are using is secure. We also recommend researching country-specific regulations related to sending large sums of money before making a transaction. For example, there is no legal limit on how much money can be transferred into Canada, but you must report any transfer that is over CAD 10,000 to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).Typically, this is the responsibility of the banks and money transfer companies, rather than individuals.

 What do I need to transfer a large amount of money?

Before you initiate a money transfer, you will need a few pieces of key information. This will depend on where you are transferring the money and the method that you choose. You will need the receiver’s, whether you are sending bank-to-bank or using an international money transfer service.

If you live in Canada and are sending money overseas, you will need your receiver’s full name, address and bank information. If you are sending money to Canada, you will need this information from your receiver:

• Name
• Bank institution number
• Transit number
• Account number
• BIC/SWIFT

When transferring large sums, you might see references to international bank account numbers, or IBANs. These numbers refer to a type of coding system used to identify bank accounts overseas, and they start with the country’s two-digit country code. Canadian banks don’t currently use IBANs, so you will need a BIC or SWIFT code instead.

Methods to consider when transferring large amounts of money

When transferring a large amount of money, you have a few options depending on your needs. Here are a few of the most common:

 1. Automated clearing house (ACH)

Automated clearing house (ACH) transactions are similar to money transfers in that they use a network of banks, but the difference is that you can transfer large amounts between bank accounts.

Bank parties have to follow specific instructions, but generally have lower fees for participants. But it doesn’t work if they both don’t have a participating bank account. This means that to  The funds also go through an intermediary clearing house in addition to the financial institution with which you initiated the transfer.

 2. Bank-to-bank

Another method of transferring large amounts between banks is using a bank-to-bank transfer. For bank-to-bank transfers, all you need is the receiver’s bank account information, including the routing number if applicable. This type of transfer is quick but generally has a fee, depending on the institution.

 3. Money transfer

Money transfers can be completed online and in-person and allow individuals to send large sums of money from one person to another. Money transfers utilize a network of domestic and international banks, and the money is processed through that network. One of the advantages of a money transfer is that the money can clear almost immediately, depending on the details of your transfer. Domestic money transfers can take up to 24 hours, and international money transfers typically take between one and five business days.

There is a fee involved with money transfers, but these offer a high level of protection for your assets.

 4. Cash-to-cash

If you need to transfer a large amount of cash, you can use a cash-to-cash transfer to drop off your money and have your recipient pick it up at their transfer center, such as a Western Union agent location. If you are initiating an international transfer, Western Union can securely handle your cash, convert it to the currency of your destination, and organize a pick-up for your recipient at a Western Union agent location nearby.

 5. Prepaid debit cards

Prepaid debit cards allow you to transfer large sums of money via a debit card, which your recipient can then use to withdraw the funds. They may also be able to use this pre-paid debit card to make a purchase just like with a normal debit card. Keep in mind that you may face an activation or monthly fee when choosing this option.

 6. Foreign currency check

Just as how you can transfer money using checks domestically, you can use checks to transfer money internationally too. Foreign currency checks are checks that are issued from your account and sent to your receiver. They can then be cashed at your receiver’s local bank. The downside of using foreign currency checks is that they take longer than the other options listed here.

 7. International money transfer service

If you’re wondering how to transfer large sums of money to or from Canada, international money transfer services are a great option—but always vet a company before you send money.

With an international money transfer service like Western Union, you can send money online, with the Western Union app, or in-person to over 200 countries and territories (while resting easy knowing your transfers are encrypted). You can also choose from several payout options, which makes it easy for your receiver to get their money in the way that’s convenient for them.

Transferring large amounts of money can be simple, when you’re aware of potential fees, requirements, and transfer methods. Choose the method that works best for you to send money when you need to.

Send money with Western Union

The next time you need to send money from Canada, Western Union is here to help. With convenient ways to send money online, with the app, or from hundreds of thousands of agent locations worldwide, we make money transfer simple.

Ready to get started? Learn how to send money online, with our app, or in person, from Canada in just a few steps. And for more information about using Western Union, view our frequently asked questions.