A real estate professional notices that a client is using multiple bank drafts from different financial institutions for a single transaction and appears nervous when asked about the source of funds. What should the professional do?
Correct Answer
C) File a Suspicious Transaction Report (STR) with FINTRAC
This scenario presents multiple red flags for potential money laundering, including unusual payment methods and suspicious client behavior. Under FINTRAC requirements, real estate professionals must file a Suspicious Transaction Report when they have reasonable grounds to suspect money laundering or terrorist financing, regardless of the transaction amount.
Why This Is the Correct Answer
Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, real estate professionals must file a Suspicious Transaction Report (STR) with FINTRAC when they have reasonable grounds to suspect money laundering. Multiple bank drafts from different institutions combined with nervous behavior about fund sources are clear red flags requiring mandatory reporting. This protects both the professional and the financial system from potential criminal activity.
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A BC brokerage receives three cash payments of $4,000 each from the same client for one purchase, on three different days more than 24 hours apart. Which statement about FINTRAC reporting is correct?
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A real estate professional suspects that a client is using the transaction to launder money but cannot definitively prove it. The transaction involves a legitimate $500,000 property purchase with proper documentation. What should the professional do?