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|It was known there were Confederates in Canada. Thompson and Clay were Confederate commissioners to Canada. And after the St. Albans raid Canadian officals arrested many of the raiders. However, they refused to turn them over to the US as they had proof the raid was a military mission. According to Markle's Spies & Spymasters of the Civil War , Foreward to Addendum, page 219:
Another courier played a role in the aftermath of the St. Albans, Vermont bank raid. That courier was Sarah Slater who had also been serving as a courier between Toronto and Richmond. After the bank raid the United States requested that the participants of the St. Albans event be extradited to the U.S. for Trial. Canada stated it would do so only if proven that the men were not members of the Confederate military and therefore on a military mission. Mrs. Slater carried the service records of the participants in the raid to Canada as proof of their military status. As a result the men were not extradited to the U.S. but remained free to continue their work for the Confederacy.
The article in the Encyclopedia of the American Civil War discuss the raid a bit more and the capture of the raiders, further explaining they were turned over to Canadian authorities after being captured by US troops on Canadian soil. It's article on Clay explains that his role in the raid actually cost him his position as commisioner.