A buyer provides a $50,000 cash deposit for a luxury property purchase. Under FINTRAC regulations, what additional step must the real estate professional take?
Correct Answer
D) File a Large Cash Transaction Report within 15 days
Cash transactions of $10,000 or more require a Large Cash Transaction Report to be filed with FINTRAC within 15 days. This helps track large cash movements that could indicate money laundering.
Why This Is the Correct Answer
Under FINTRAC regulations, any cash transaction of $10,000 or more requires a Large Cash Transaction Report (LCTR) to be filed within 15 calendar days. Since the buyer provided a $50,000 cash deposit, this exceeds the threshold significantly. Real estate professionals are reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and must comply with this mandatory reporting requirement to help detect and deter money laundering activities.
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A brokerage's trust account shows a shortage of $5,000 during a routine audit. What is the most serious immediate consequence under provincial regulations?
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A Canadian brokerage has reasonable grounds to suspect that a client's purchases are linked to money laundering. The client refuses to explain large cash payments. What is the brokerage's FINTRAC reporting obligation?