A real estate professional has reasonable grounds to suspect that a client's large cash deposit may be proceeds of crime. Under FINTRAC requirements, what action must they take?
Correct Answer
D) File a suspicious transaction report with FINTRAC without tipping off the client
Real estate brokers and representatives are reporting entities under Canada's anti-money laundering law. When they have reasonable grounds to suspect a transaction is related to money laundering or terrorist financing, they must file a suspicious transaction report with FINTRAC as soon as practicable, whether the transaction is completed or only attempted, and must not tip off the client. The law does not require them either to complete or to refuse the deal.
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A real estate professional suspects that a client's funds may be proceeds of crime but cannot definitively prove it. The transaction involves legitimate documentation and the client provides reasonable explanations. What is the appropriate FINTRAC compliance action?
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