Under FINTRAC's beneficial ownership requirements, a real estate brokerage must obtain information about the individuals who own or control a corporation involved in a transaction. What level of ownership or control makes an individual a beneficial owner?
Correct Answer
B) At least 25%
FINTRAC defines beneficial owners as the individuals who directly or indirectly own or control at least 25% of a corporation or other entity. The brokerage must obtain their names and addresses and take reasonable measures to confirm the information. The 25% figure defines whose information must be collected; it is not a trigger for enhanced due diligence.
Why This Is the Correct Answer
This answer is correct because FINTRAC's guidance defines beneficial owners as individuals who directly or indirectly own or control at least 25% of a corporation or other entity. Anyone at or above that level must be identified in the brokerage's beneficial ownership records.
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