An Ontario salesperson receives a $15,000 cash deposit from a buyer. What must the brokerage do under Ontario trust rules and FINTRAC requirements?
Correct Answer
A) Deposit it in trust within five business days and file a Large Cash Transaction Report
O. Reg. 567/05 s. 17 requires trust money to be deposited within five business days. Separately, FINTRAC requires a Large Cash Transaction Report when $10,000 or more in cash is received in a single transaction, submitted within 15 calendar days, and the identity of the person giving the cash must be verified. Accepting the $15,000 is legal; it simply triggers the report.
Why This Is the Correct Answer
Depositing within five business days satisfies the Ontario trust rule in O. Reg. 567/05 s. 17, and the Large Cash Transaction Report satisfies FINTRAC's rule for receiving $10,000 or more in cash. Both obligations apply at the same time.
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An Alberta real estate associate notices that the brokerage's trust account appears to hold less money than the brokerage owes its clients and customers. Under the RECA Rules, what is the associate's most appropriate first step?
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