The following is a summary of the legislative requirements under the PCMLTFA applicable to real estate brokers or sales representatives when they engage in any of the following activities on behalf of any person or entity in the course of a real estate transaction:

• Receiving or paying of funds
• Deposit or withdrawal of funds or
• Transfer of funds by any means

Where a real estate broker or sales representative is an employee of a reporting entity, these requirements are the responsibility of the employer except with respect to reporting suspicious transactions and terrorist property, which is applicable to both.

Where a real estate agent is acting on behalf of a broker, these requirements are the responsibility of the broker except with respect to reporting suspicious transactions and terrorist property, which is applicable to both.

• Obligation to report
  • Suspicious transactions
  • Terrorist property
  • Large cash transactions
• Record keeping
• Ascertaining identification
• Third-party determination
• Compliance regime
• Compliance Questionnaire
   

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FINTRAC Interpretation Notices

• Large Cash Transaction and Electronic Funds Transfer Reporting Requirements: Two or More Transactions in a 24-Hour Period (The '24-Hour Rule')

Obligation to Report

• Suspicious transactions
  You must report where there are reasonable grounds to suspect that a transaction is related to the commission of a money laundering offence or to the financing of a terrorist activity.
  
  See Guideline 2: Suspicious Transactions and Guideline 3: Submitting Suspicious Transaction Reports to FINTRAC
  
  
• Terrorist property
  You must report where you know that there is property in your possession or control that is owned or controlled by or on behalf of a terrorist or a terrorist group.
  
  See Guideline 5: Submitting Terrorist Property Reports to FINTRAC
  
  
• Large cash transactions
  Large cash transactions involving amounts of $10,000 or more received in cash, must be reported.
  
  

  See Guideline 7: Submitting Large Cash Transaction Reports to FINTRAC

Record Keeping

The following records must be kept:

• Large cash transaction records

See Guideline 6: Record Keeping and Client Identification

Ascertaining Identification

Specific measures must be taken to identify the following individuals:

• Any individual who conducts large cash transactions

See Guideline 6: Record Keeping and Client Identification

Third-Party Determination

Where a large cash transaction record is required, you must take reasonable measures to determine whether the individual is acting on behalf of a third party.

In cases where a third party is involved, specific information about the third party and the relationship with the individual providing the cash must be obtained.

See Guideline 6: Record Keeping and Client Identification

Compliance Regime

The following four elements must be included in a compliance regime:

• The appointment of a compliance officer
• The development and application of compliance policies and procedures
• Periodic review of the effectiveness of policies and procedures
• Implementation of an ongoing compliance training program

See Guideline 4: Implementation of a Compliance Regime

Compliance Questionnaire

Part of FINTRAC's mandate is to ensure compliance by financial intermediaries and other reporting entities with their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and regulations. To do this, we can inquire into your business and examine records, including those relating to your compliance regime.

We have developed a real estate questionnaire for you to provide information concerning your organization’s compliance regime. A copy is posted here for you to consult and to provide you with examples of questions FINTRAC may ask in relation to your compliance regime. If you have been selected to complete this questionnaire you will be advised in writing by FINTRAC.