7.14 The No Cash Rules

Another anti-money laundering measure brought in by the Law Society in 2005 was to prohibit the receipt of more than $7500 in cash.

The Rules of the Law Society of Alberta, Rule 119.38 (2) states:

A lawyer shall not receive, or accept from a person, cash in an aggregate amount of $7500 or more Canadian dollars in respect of any one client matter or transaction.

This Rule applies when lawyers engage on behalf of a client, or give instructions on behalf of a client, in respect of

(a) Receiving or paying funds;
(b) Purchasing or selling securities, real properties or business assets or entities;
(c) Transferring funds by any means (Rule 119.38(4)).

However the Rule does not apply when the lawyer receives cash

(a) From a financial institution or public body;
(b) From a peace officer, law enforcement agency or other agent of the Crown acting in his or her official capacity;
(c) Pursuant to a court order or to pay a fine; or
(d) In an amount of $7500 or more for professional fees, disbursements, expenses or bail, provided that any refund greater than $1000 out of such receipts is also made in cash and a receipt signed by the person receiving the cash is obtained by the lawyer. (Rule 119.38(5)).

You should make your staff aware of these Rules - it is always easier to explain that you cannot accept cash of more than $7500 than to figure out what to do once you have received it.

<7.13 Identity Fraud

Last modified: Monday, 17 July 2017, 4:35 PM