A real estate agent in Alberta receives a $25,000 deposit from a client in cash for a property purchase. What immediate actions must the agent take?
Correct Answer
B) Verify the client's identity, deposit in trust, and file an LCTR within 15 days
The agent must verify the client's identity as required by FINTRAC, deposit the funds in the brokerage trust account, and file a Large Cash Transaction Report within 15 days. Cash payments over $10,000 trigger specific FINTRAC reporting requirements.
Why This Is the Correct Answer
Option B correctly identifies all three mandatory steps under FINTRAC regulations: client identity verification (required for all large cash transactions), depositing funds in the brokerage trust account (standard fiduciary duty), and filing a Large Cash Transaction Report (LCTR) within 15 days of receiving cash of $10,000 or more. This comprehensive approach ensures full compliance with both provincial real estate regulations and federal anti-money laundering requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
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Previous Question
An Alberta associate receives a $15,000 deposit with a buyer's offer to purchase, and the seller accepts the offer. Unless the parties have agreed in writing to a different period, by when must the deposit be placed in the brokerage's trust account?
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A real estate agent in Alberta receives a $25,000 deposit paid in cash by a buyer. What FINTRAC obligations apply to this transaction?