Post-secondary institutions are moving away from cash payments. This is because the method has been condemned by the local government of British Columbia (BC) for facilitating money laundering.
British Columbian universities have been advised to ban cash payments while doing transactions with students. The move has been hailed as necessary in order to curb cash laundering.
The BC government had asked post-secondary schools to ban the usage of cash six months ago and in a new report, many have closed loopholes that had been highlighted by Peter German a The Royal Canadian Mounted Police (RCMP).
Case against cash payments
The report from German had several recommendations with some highlighting how acceptance of cash was leading to cash laundering. An example is a case study where a student was able to deposit up to $9,000 and would, later on, ask for a refund in checks.
This was not just an isolated case, a lot of students were paying for multiple semesters using thousands of dollars in cash. After making the cash payments, the students would then ask for refunds which they wanted in a cheque form. This issue disturbed even Attorney General David Eby who warned institutions not to be used as conduits for money laundering.
Since raising a concern about this practice, many universities had agreed to take steps in ending this mode of payment. Thompson Rivers University (TRU) and the University of the Fraser Valley were among the top institutions that welcomed this move and have been at the forefront in implementing it.
Purpose of laundering money
TRU, for instance, put out a statement stating, has no reason to believe our cash-acceptance policies have been taken advantage of for the purpose of laundering money.
The students have also been eager to move to the new system with a lot already migrating to other modes of payment. In fact, TRU noted that a large percentage of their students were already using other means of payment.
Several other schools are also reviewing the best way forward in implementing the policy. This includes both technical colleges and universities who have shown willingness to cooperate with the government to come up with a long-lasting solution.
Cash acceptance policies are also being implemented and all post-secondary schools had already responded to a call asking them to disclose if they had such a policy. This is a work in progress but the government is optimistic that they will be able to achieve between the schools and administration.
An old story…
Global News reports have revealed allegations of money laundering at B.C. casinos, through a scheme some investigators have dubbed the “Vancouver model.”
There have been inquiries. People have been complaining and this cash payments ban is long overdue.
