Scotiabank is facing criticism after implementing a new policy that denies walk-in customers even small cash services unless they open an account, prompting questions about compliance with federal banking laws and the future of cash access in Canada.The bank posted a notice at a Calgary branch stating that, starting July 14, it will only accept cash transactions from existing Scotiabank clients. No explanation was provided. When asked for clarification, bank spokesperson Daniela De Silva declined to comment and would not confirm whether the policy had been reviewed for compliance with the Bank Act.Under section 627.04 of the Act, financial institutions are prohibited from coercing customers into buying one product or service in order to access another. .Section 627.05 requires banks to cash federal cheques with proper ID, but the law does not explicitly require them to accept cash from the public more broadly.The policy comes just weeks after the federal cabinet introduced Bill C-2, a measure banning cash transactions of $10,000 or more — regardless of their source. The bill applies to banks, credit unions, charities, and other federally regulated entities. Although large cash deposits already had to be reported under anti-terrorism and money laundering legislation, Bill C-2 is the first law to outright prohibit such transactions.The move has sparked pushback from Conservative MPs, who say legitimate businesses and individuals are being penalized. .“Cash is still legal tender,” said MP James Bezan. “There are ways we can still enforce money laundering and terrorist financing rules in this country without going after people legitimately collecting cash in their day-to-day business activities.”MP Michael Ma also raised concerns about the impact on small businesses, many of which rely on cash to avoid electronic transaction fees. “To legislate and force all transactions to go through credit cards and electronic means is just not practical for small and medium enterprises,” Ma said.Scotiabank has not indicated whether the policy will be rolled out nationwide.
