A real estate salesperson receives a $25,000 deposit from a client who pays entirely in cash. Under FINTRAC requirements, what must the salesperson do?

Q: What is the correct answer to: A real estate salesperson receives a $25,000 deposit from a client who pays entirely in cash. Under FINTRAC requirements, what must the salesperson do?

The correct answer is File a Large Cash Transaction Report within 15 days. Option A is correct because FINTRAC regulations require real estate professionals to file a Large Cash Transaction Report (LCTR) within 15 days when they receive $10,000 or more in cash in a single transaction. The $25,000 cash deposit clearly exceeds this threshold, triggering the mandatory reporting requirement. This applies to all real estate salespersons acting as reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The 15-day timeline is specifically mandated by FINTRAC regulations.

Q: What background knowledge is needed for this Regulatory Compliance question?

FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) is Canada's financial intelligence unit established under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. Real estate professionals are designated as reporting entities and must file Large Cash Transaction Reports (LCTR) for transactions of $10,000 or more in cash within 15 days. They must also file Suspicious Transaction Reports (STR) when they have reasonable grounds to suspect money laundering or terrorist financing. These requirements apply to all real estate salespersons and brokers across Canada, regardless of provincial licensing jurisdiction.

Q: What is a good way to remember the answer to this Regulatory Compliance question?

Remember '$10K in 15 Days' - like ordering something expensive online and having 15 days to report the purchase to your accountant. When cash hits $10,000 or more, you have 15 days to file the LCTR with FINTRAC, just like you'd have 15 days to report a major business expense. When you see any cash amount of $10,000 or higher in exam questions, immediately think '$10K-15 Days' and look for the Large Cash Transaction Report option with the 15-day timeline. This helps distinguish between LCTR (amount-based) and STR (suspicion-based) requirements.

Q: What exam tip applies to this Regulatory Compliance question?

Look for cash amounts of $10,000+ to trigger LCTR requirements. Remember the 15-day timeline is specific to FINTRAC reporting. Don't confuse with STR (suspicious activity) or provincial reporting requirements.

Q: How does this Regulatory Compliance concept apply in real world practice?

A buyer approaches with $30,000 cash for a deposit on a luxury condo purchase. The salesperson accepts the deposit, provides a receipt, and ensures proper trust account procedures. Within 15 days, they complete and submit a Large Cash Transaction Report to FINTRAC with all required client identification and transaction details. The transaction proceeds normally while maintaining compliance with federal anti-money laundering regulations, protecting both the salesperson's license and the brokerage from regulatory violations.

Question

Regulatory ComplianceFINTRAC Anti Money LaunderingONMEDIUM

A real estate salesperson receives a $25,000 deposit from a client who pays entirely in cash. Under FINTRAC requirements, what must the salesperson do?

Answer Options

A

File a Large Cash Transaction Report within 15 days

B

File a Suspicious Transaction Report immediately

C

Refuse to accept the cash payment

D

Report the transaction to their provincial regulator only