According to the recent report, in Canadian region money laundering is becoming a significant concern, mainly through university in the form of tuition fees paid as cash and withdrawn as a refund in the form of a cheque.
Everyone is supporting nationwide the initiative of the ban against any cash purchase of $10,000. To prevent money laundering, the government of British Columbia has instructed schools and colleges to stop taking huge tuition fees.
Melanie Mark, the Education Minister, has sent a letter to the head of 350 private institutions and 25 state universities to make changes in their financial rules and policies to ensure that students should not pay tens of thousands of dollars in cash for any fees.
The Government of British Columbia is trying all possible ways to stop independent money laundering and closing several loopholes by revising existing cash rules in schools and private institutions.
In August 2019, Thompson Rivers University has already stopped cash tuition payments to support the government’s anti-money-laundering initiative.
The University of the Fraser Valley also adopted the best practice by phasing out cash payment for tuition from September 2019. All post-secondary schools are requested to stop large cash payments and make necessary changes in policy.
Universities will be accepting cash up to $1,000 per day, which includes certain necessary transactions such as application fees, parking fees, library fines, and registration fees.
Attorney General David Eby, German said that post-secondary institution needs to revise the policy as he suspects that some people are paying fees in advance for multiple semesters in the form of thousands of dollars and later asking refunds in the form of a cheque. He is asking the institution to stop this practice to put a prohibition on money laundering.
So, this means the days of carrying a bag full of cash for tuition fees is coming to an end. As per Dave Pinton, the director of communication of UFV said that payment through credit card or bank would be in more favour and secure as the transactions can be easily documented in the Canadian financial system.
In the year 2018-19, UFV has received cash payments over $10,000. Many schools are still revising their cash policy to follow the government’s rule.
The University of British Columbia has reported that they haven’t accepted cash for more than ten years and Simon Fraser University has banned it since January 2017.
Many universities and schools are planning to covert the system of fee taking completely online so that everything is on track. The Ministry is taking all possible action to ensure the stopping of money laundering at all post-secondary sectors.