A real estate agent in Alberta receives a $25,000 deposit paid in cash by a buyer. What FINTRAC obligations apply to this transaction?
Correct Answer
D) Verify identity and file a Large Cash Transaction Report within 15 days
Since the cash payment exceeds $10,000, the agent must verify the client's identity and file a Large Cash Transaction Report with FINTRAC within 15 days. The agent must also maintain records of the transaction and client identification for the required period.
Why This Is the Correct Answer
Under FINTRAC regulations, real estate agents must verify client identity for all transactions and file a Large Cash Transaction Report (LCTR) within 15 days when receiving cash payments of $10,000 or more. Since this $25,000 deposit exceeds the threshold, both identity verification and LCTR filing are mandatory. The agent cannot refuse the payment as cash transactions are legal when properly reported.
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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?
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