May 6th - 2008

Some FINTRAC issues clarified

The fog of confusion of complying with some of the new requirements of Canada’s anti-money laundering legislation may be a little less dense now that FINTRAC has provided CREA and members with some answers and tools.

The fog of confusion of complying with some of the new requirements of Canada’s anti-money laundering legislation may be a little less dense now that FINTRAC has provided CREA and members with some answers and tools.
 
Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), REALTORS®, along with financial institutions and others covered by the legislation are required to identify customers who conduct financial transactions such as: depositing funds, purchasing a life insurance policy or buying a money order. The Act also requires you to keep records and identify your clients.
 
Under the Act, you are required to ask to see valid identification from your clients such as a birth certificate, a driver’s license, or similar type of document. For many clients, especially those you have known for many years and worked with several times, it may be difficult for them to understand why you are requesting identification. To help explain the reasons, and your obligations under the Act, FINTRAC (The Financial Transactions and Reports Analysis Centre of Canada), has developed a consumer brochure called, “What you need to know.” 
 
To obtain copies of the brochure, or to direct your clients, contact FINTRAC at 1-866-346-8722 or visit them online at www.fintrac.gc.ca.
 
CREA gets answers
FINTRAC has responded to CREA on two of the three problematic points: the requirement for a firm’s self assessment of its potential risk or exposure to money laundering and terrorist financing, and the requirement for identification of foreign or non face-to-face buyers.
 
CREA’s proposed risk assessment questionnaire for each broker to complete (see REALTOR® EDGE April 2008) has been accepted. As well FINTRAC has said that verifying non face-to-face buyers can be done by a real estate professional in the client’s area.
 
For more information check www.realtorlink.ca.
 
As well, OREA offers a two-credit online course called “Money Laundering” and a three-credit classroom course called “Money Laundering and Grow Houses” both of which will address the changes. For more information, visit the continuing education section of this website or contact your board.

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Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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