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Is a non-resident allowed to receive money transfers from other non-residents to help them pay for things in Canada?

Personal Finance & Money Asked on August 21, 2021

Suppose a parent has two children: child A and child B. Both children are 18+. The parent, child A, and child B are all non-citizens and non-residents of Canada; they do not live in Canada. Child A happens to have a Canadian bank account, but the parent does not. The parent will soon be paying for child B’s further education, and needs to make a large initial payment to the university that child B will soon be attending. Can the parent wire a large sum of money to child A’s Canadian bank account, and get child A to make payments to the university using that sum? Will the Canadian bank become suspicious of such money transfers?

Things you can assume:

  • Assume that child A is trustworthy.
  • Assume that there are no regulatory issues (tax, banking, money laundering, etc.) that prevent such transactions in their current place of residence. They are now only concerned about Canadian regulations, which they are less familiar with.
  • Assume that payment of fees using Canadian banks is significantly more convenient (from a paperwork and currency risk standpoint) than any other method, which is why the family plans to pay school fees using the method outlined above.

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