GAMBLING WINNINGS LOST TO CBSA SEIZURE
STRONG EVIDENCE REQUIRED TO DEMONSTRATE LEGITIMATE ORIGIN OF SEIZED FUNDS
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Travelers entering Canada are strictly required under Section 12 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “Act”) to report currency and/or monetary instruments valued at CA$10,000 or more to a Canada Border Services Agency (“CBSA”) officer. Not declaring such funds can lead to severe consequences, including the immediate seizure of the currency under Section 18 of the Act.
A recent Federal Court decision, Mejia v. Attorney General of Canada, 2026 FC 1045 (“Mejia”) illustrates just how difficult it can be to get seized funds back from the CBSA. In this Customs & Trade Report, we review the Mejia decision to examine the strict evidentiary burdens placed on travelers trying to get seized funds back, and the limits of judicial review for such cases.
The Original Seizure and Application for CBSA Review
In Mejia, a returning traveler was found to have an undeclared sum of $37,000 USD in cash. He claimed he had won it gambling after starting off with $2,000 USD. Suspicious CBSA officers seized the funds for failure to declare them under Section 18 of the Act, prompting Mr. Mejia to seek a Section 25 Minister’s review of that seizure. To recover funds seized under Section 18, a traveler must prove either: (1) the funds actually were declared; or (2) the legitimate origin of the funds with an unbroken paper trail.
Mr. Mejia submitted sports betting receipts, a win/loss summary, and videos of casino chips, but the Minister's delegate denied relief. The receipts accounted for only a portion of the amount and the win/loss summary did not show dates. The videos also failed to clearly establish the chips were Mr. Mejia’s or that he had cashed them in. Accordingly, there was no direct link between the alleged casino payouts and the seized cash, and the funds were forfeited to the Crown under Section 29 of the Act.
The Limitations of Judicial Review
Mr. Mejia applied to the Federal Court for a judicial review to quash the forfeiture, but the Court dismissed his application, highlighting two severe limitations of judicial reviews of such forfeitures.
First, the Court applies a highly deferential reasonableness standard. It does not independently determine if the evidence demonstrates the source of the funds, but only assesses whether the Minister’s conclusion was justified based on the evidence provided.
Second, the evidentiary record is locked; the Court may only consider the evidence previously provided to the Minister. Because of this, the Court rejected Mr. Mejia’s attempt to introduce new affidavit evidence, affirming that applicants cannot supplement their evidence once the Minister has made a decision.
the border. Permanent forfeiture could follow.
Experienced Customs Counsel can help travelers with CBSA
appeals and proving the legitimate source of seized funds.
Takeaways
Individuals entering or returning to Canada with CA$10,000 or more in currency/monetary instruments MUST declare it to CBSA.
The Mejia decision demonstrates that if a traveler fails to declare funds and the CBSA seizes same, the Minister’s review is the best opportunity for an individual to assemble and submit the necessary proof of origin of the funds. Further judicial review to the Federal Court is extremely limited. Accordingly, retaining Experienced Customs Counsel immediately after a seizure is critical.
Experienced Customs Counsel can help travelers compile the precise, unbroken documentary paper trail required to put their best evidence forward and successfully recover their seized funds.
For help with a Currency Seizure, please click here.