FINTRAC Resource Materials to Help Simplify Compliance.Once completed you must scroll all the way down and verify you have taken this course!
Money Laundering - FINTRAC Resources
CREA continues to support REALTORS® and brokers by providing tools and resources to assist in complying with requirements of Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and regulations.
In June 2016, FINTRAC announced a series of changes to the Act. CREA completed an extensive review and the changes are highlighted below.
The current process of identifying individuals has been improved to add more flexibility. There are now three methods of identification:
Single Process method
Using a single piece of federal/provincial government-issued photo identification.
Dual Process method
Using two original, valid and current documents or information from independent and reliable sources (such as utility bills or bank statements).
Credit File method
Verifying that the client’s name, date of birth and address match information obtained from a Canadian credit bureau that has been in existence for at least three years.
The Credit File and the Dual Process methods may be used for non-face-to-face identification.
FINTRAC released the Risk-based approach workbook for the Real Estate sector, a guide to help brokers and REALTORS® identify risks in the real estate sector as well as ways to implement an effective risk mitigation strategy.
Note that CREA’s Risk Assessment Form remains a valid resource for brokers and REALTORS® to assess and document the threats and vulnerabilities specific to their business.
FINTRAC released the Operational Brief: Indicators of Money Laundering in Financial Transactions Related to Real Estate, a guide to help brokers and REALTORS® identify suspicious transactions.
The Operational Brief includes clarification and guidance as well as a list of indicators, methods and techniques that could potentially be used to bring illicit funds into the Canadian financial system. Remember, all suspicious transactions have to be reported to FINTRAC by filing an online Suspicious Transaction Report.
CREA is pleased to announce that after several months of lobbying, FINTRAC has amended its interpretation on the definition of a business relationship and associated ongoing monitoring requirements. Several years ago, FINTRAC stated that a business relationship is formed when two transactions occur within five years with the same brokerage. Given this decision was and is contrary to the fundamental nature of REALTORS® business, CREA has lobbied extensively to change this interpretation.
As a result of CREA efforts, FINTRAC has changed its position to state that ongoing monitoring and record keeping requirements now start at the THIRD transaction. A business relationship is still formed at the end of the second transaction, however, the ongoing monitoring is only required if a third transaction occurs. This change will significantly reduce both time and effort required to comply with FINTRAC and demonstrates CREA’s commitment to reducing the burden on our sector.
CREA’s materials and forms have been updated to reflect the new guidance and obligations. Revised forms, which incorporate the changes, are available now on REALTOR Link and will be on WEBForms starting April 18, 2017.
Members are free to continue using their existing forms until June 17, 2017, after which time only the revised forms will satisfy members’ obligations. Although the old forms have been removed from REALTOR Link and WEBforms, members may obtain copies of the old forms until June 17, 2017 by contacting member support. Please update your forms accordingly.
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