A real estate salesperson receives a $50,000 deposit from a client purchasing a property. Under FINTRAC requirements, what must the salesperson do regarding client identification?
Correct Answer
B) Verify identity using a prescribed method, such as photo ID
A real estate broker or sales representative must verify the identity of a person from whom they receive funds, in any amount, at the time of the transaction, and of each client they act for in a purchase or sale. The regulations prescribe the methods: government-issued photo identification, a credit file, the dual-process method, or reliance on an affiliate or member, or on another reporting entity. Photo ID is the most common method, but not the only one.
Why This Is the Correct Answer
This answer captures the requirement: identity must be verified using a method the regulations prescribe, of which government-issued photo ID is the most common. The $50,000 deposit is a receipt of funds, so verification happens at the time of the transaction.
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Previous Question
A salesperson's brokerage receives a $25,000 deposit from one client in three cash payments: $8,000 and $9,000 on Monday morning, and $8,000 on Wednesday. What FINTRAC reporting obligation applies?
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An Alberta real estate licensee discovers that their brokerage has been inadvertently mixing trust funds with general operating funds for six months. What is the most appropriate immediate course of action?