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I need to move a large amount of cash from the U.S. to Canada (around $50K). What is the best way to do this?  Presently, I am planning on wiring the money from my U.S. bank account to the Canadian bank account but am worried about not getting a good rate for the exchange.
— Robert, Boston Mass.

No matter what daily exchange rate you find published in the paper, you'll get a little less than the market rate when you convert your dollars to loonies. For travelers looking to convert for small amounts, banks usually offer the best rates. But like anything else involved in travel, it pays to shop around if you can.

With larger amounts, a little shopping can make a big difference: Every penny you lose on your $50,000 transfer will cost you $500. You may also want to expand your shopping list to include major currency brokers. Unfortunately, currency markets move minute by minute, so it’s tough to get an exact price on the cost of the transfer ahead of time.

And at the moment, no matter where you go, the conversion rate is not going to be pretty. The dollar recently hit a 30-year low against the Canadian loonie and could be headed even lower.

Also, keep in mind that transactions of $10,000 or more have to be reported to the U.S. Treasury Dept. — which is looking for tax dodgers, money launderers, terrorists, and other law breakers. According to the IRS.gov Web site, these reports can include:

• Currency Transaction Report (CTR): Filed by financial institutions handling a currency transaction of more than $10,000.
  
• Report of Foreign Bank and Financial Accounts (FBAR): Individuals have to report a financial interest in accounts in foreign countries, if the total value of these accounts is more than $10,000 at any time during the calendar year.
  
• IRS Form 8300, Report of Cash Payments Over $10,000: This one is filed by anyone engaged in a trade or business who, in the course of that trade or business, receives more than $10,000 in cash in one transaction — or two or more related transactions — within a 12-month period.
  
• Suspicious Activity Report (SAR) These are filed on transactions or attempted transactions involving at least $5,000 that the financial institution "knows, suspects, or has reason to suspect" the money came from illegal activities.

Under certain circumstances, you may be considered an "exempt person" — but the bank has to file a form designating you as such, based on the reporting rules.

One obvious way to try to avoid this reporting would be to move the money in several transactions that fly below the $10,000 radar. Alas, if this is done solely to avoid the reporting requirements, you could be charged with trying to "structure" the transaction to evade the law. (That's illegal.)

So better check with your banker to see which rules apply to you before you send your hard-earned dollars on their way.

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