The No Cash Rule means lawyers must not accept:  

• more than $7,500 in cash from clients or prospective clients, in respect to any one client matter; or,   
• more than $7,500 in cash on a client matter even if there is more than one client. The limit applies despite the number of clients.  

A lawyer can accept greater than 7,500 cash from a client:  

• for unrelated matters, but only if the amount for each individual matter is $7,500 or less; or,  
• in foreign currency, but the amount once converted to Canadian dollars must not be greater than $7,500.  

The following exception applies: A lawyer may receive more than $7,500 cash in connection with the provision of legal services if it:  

• comes from a financial institution or public body;  
• comes from a peace officer, law enforcement agency, or other agent of the crown (acting in their official capacity);  
• is used to pay a fine, penalty or bail; or  
• is for professional fees, disbursements, or expenses, provided that any refund is also made in cash.  

A lawyer can accept greater than $7,500 cash from a client for unrelated matters, but only if the amount for each individual matter is $7,500 or less. 

A client can pay a lawyer in foreign currency, but the amount once converted to Canadian dollars must not be greater than $7,500. 

If, for example, a client finds $2,000 in a safety deposit box, that may be deposited in the trust account. If the client finds an additional $8,000, that entire amount cannot be deposited as it would be an aggregate of $10,000.    

In such a circumstance it would be appropriate to advise the client to:   

• open an estate account and deposit the cash into that account; or,   
• suggest that the client use the cash to get a bank draft payable to the law firm in trust.  

Be aware that if a client or other person has your trust account information, they could deposit cash directly into your trust account without your knowledge or consent. Be on guard. Check all direct deposits to determine the form of funds deposited and accurately record the information.   

Lawyers must check all direct deposits to determine the form of funds received and accurately record the information. If cash was received, you must ensure that you can accept it.    

Example: A client deposited $15,000 in cash into a lawyer’s bank account at a bank branch in another province to cover a residential conveyance. The lawyer mistakenly believed that Rule 119.57 (1) only applied when it was actually received as cash in his office. The lawyer also failed to record the funds in a cash receipt book contrary to Rule 119.58 (1) and failed to correctly report the transaction on the firm’s trust report contrary to Rule 119.10(1) (d).    

If you are returning funds on a cash receipt of $7,500 or more, the refund must be returned to the client by way of cash. This puts the client in the same cash holdings position as when he or she came to the law firm.   

Typically, the law firm would write a cheque payable to the financial institution to obtain the necessary amount of cash to make the refund. The person/client receiving the cash refund must sign a receipt acknowledging that the cash was paid to them by the law firm.   

Example: A lawyer requests a $15,000 retainer fee from a client to cover professional fees, disbursements, and expenses, for providing specified legal services. The client provides the retainer fee in cash. At the conclusion of the retainer, the lawyer bills the client for $12,000 for services provided. The lawyer must refund the remaining $3,000 in the form of cash.  

If the law firm breached the $7,500 in cash, the law firm should self-report the matter to the Law Society and discuss with the Practice Advisor the possible return of the cash received. Send the information by email and include:    

• Information about the client;    
• client trust ledger card;    
• cash receipt;    
• bank statement; and,    
• any other applicable documents relating to the cash transaction.