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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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  • I'm not a financial expert, let alone an expert on international finance law, but as a Canadian, if the bank allowed A to open and keep the account despite being a non-citizen, non-resident, then I don't see any reason why transferring money in and out would be illegal. Particularly large sums might get a hold put on them for a week or two and there may well be fees involved, but I would expect those to be deducted automatically from the remaining balance.
    – Steve-O
    Commented Aug 25, 2020 at 13:47
  • "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." Wouldn't that be incorrect? you'd just use ofx.com which is dead easy. (or any competitor, transferwise etc)
    – Fattie
    Commented Aug 25, 2020 at 16:26
  • @Fattie These convenient services are not available in most of the world. especially the developing world. The most convenient method is the method outlined in the question.
    – Flux
    Commented Aug 25, 2020 at 17:43
  • @Flux - hmm, that list of countries is getting less and less! But I stand corrected, thanks
    – Fattie
    Commented Aug 25, 2020 at 17:52

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