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.
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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?