Under FINTRAC regulations, real estate professionals must report which type of transaction?

Q: What is the correct answer to: Under FINTRAC regulations, real estate professionals must report which type of transaction?

The correct answer is Cash transactions of $10,000 or more. Option B is correct because FINTRAC regulations specifically require real estate professionals to report Large Cash Transaction Reports (LCTRs) for any cash transaction of $10,000 CAD or more. This threshold is clearly defined in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations. The requirement applies to all cash transactions meeting this threshold, regardless of the parties involved, and is a fundamental anti-money laundering compliance obligation for real estate professionals across Canada.

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

FINTRAC operates under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Real estate professionals are designated as reporting entities and must comply with various obligations including customer due diligence, record keeping, and reporting suspicious and large cash transactions. Large Cash Transaction Reports (LCTRs) must be filed within 15 days of the transaction. The $10,000 threshold includes multiple cash payments totaling $10,000 or more within 24 consecutive hours. Real estate professionals must also file Suspicious Transaction Reports (STRs) when they have reasonable grounds to suspect money laundering or terrorist financing, regardless of transaction amount.

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

Remember 'TEN THOUSAND CASH = TELL FINTRAC' - any cash transaction of $10,000 or more must be reported. Think of it as the 'Ten Grand Tell' rule. The number 10,000 has four zeros, like the four letters in CASH, making it easy to remember that cash transactions of this amount trigger reporting. When you see FINTRAC questions, immediately think '$10,000 cash threshold.' Eliminate options that mention foreign buyers only, market prices, or entity types, as FINTRAC cash reporting is purely about the dollar amount and payment method.

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

Look for the specific dollar threshold ($10,000) and payment method (cash) in FINTRAC questions. Ignore distractors about buyer nationality, entity types, or market values - FINTRAC cash reporting is straightforward: $10,000+ in cash = mandatory report.

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

A buyer wants to purchase a $500,000 condo and arrives at closing with $15,000 in cash for their down payment, with the remainder financed through a mortgage. Despite the total purchase price being much higher, the real estate professional must file a Large Cash Transaction Report with FINTRAC within 15 days because the cash portion exceeds $10,000. The professional must collect specific information about the buyer, verify their identity, and report the transaction details. This applies whether the buyer is Canadian, foreign, an individual, or a corporation.

Question

Regulatory ComplianceFintrac_amlEASY

Under FINTRAC regulations, real estate professionals must report which type of transaction?

Answer Options

A

All transactions involving foreign buyers

B

Cash transactions of $10,000 or more

C

Any transaction above the provincial average home price

D

Transactions involving corporate entities only