A British Columbia real estate licensee discovers that their client may be using the property purchase to launder money. What is the most appropriate immediate action?
Correct Answer
D) File a Suspicious Transaction Report with FINTRAC
When a real estate professional has reasonable grounds to suspect money laundering, they must file a Suspicious Transaction Report with FINTRAC as soon as practicable. The licensee must not tip off the client about the report or investigation.
Why This Is the Correct Answer
Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, real estate professionals are required reporting entities who must file Suspicious Transaction Reports (STRs) with FINTRAC when they have reasonable grounds to suspect money laundering. This must be done as soon as practicable after forming the suspicion. FINTRAC is Canada's financial intelligence unit specifically designed to receive and analyze such reports. Filing with FINTRAC is the legally mandated first step in the anti-money laundering compliance process.
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A BC representative receives a $50,000 deposit from a buyer client on behalf of the brokerage. What does the Real Estate Services Act require the representative to do with it?
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A British Columbia licensee discovers that, on a purchase that completed six months ago, they never verified their buyer client's identity. Which legal regime imposed the identity verification duty they missed?