Ethics Legal Framework, Privacy & AML question: large cash transaction reporting rule

EthicsLegal Framework, Privacy & AML

Meera, 64, is retiring from a Saskatchewan school board. She wants guaranteed income and decides to buy an immediate life annuity for $40,000, paid entirely by a direct transfer from her registered pension plan to the insurer. Her agent notes the amount is above $10,000 and wonders what the anti-money-laundering rules require for this purchase. Does the large cash transaction reporting rule apply?

A Yes, because annuities carry a high laundering risk
B Yes, any premium of $10,000 or more is reported
C No, because annuities are never covered by the rules
D No, a direct pension-transfer annuity is excepted

Show the answer and explanation

Answer: D. No, a direct pension-transfer annuity is excepted

The large cash transaction report applies to $10,000 or more received in cash. The Regulations exclude, among others, an immediate or deferred annuity paid for entirely with funds transferred directly from a registered pension plan, the sale of a registered annuity policy or RRIF, and an annuity bought entirely with group life proceeds. A direct pension transfer is not cash in any event. Source: Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, SOR/2002-184 (current to 21 Sep 2026; as at 12 Oct 2026), s. 18(b)(i)-(iii).

Common mistake

Applying the large cash report to transfers that are not cash.

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Original study material mapped to the public CISRO curriculum; not a real test question.Not affiliated with CISRO, CCIR or any provincial insurance regulator. Verify figures and rules against current guidance before relying on them.