Under FINTRAC regulations, which of the following triggers a mandatory reporting obligation for a BC real estate licensee?

Q: What is the correct answer to: Under FINTRAC regulations, which of the following triggers a mandatory reporting obligation for a BC real estate licensee?

The correct answer is Receipt of $10,000 or more in cash (or multiple cash amounts totalling $10,000 or more within 24 hours) in a single transaction. Option B is correct because under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, real estate professionals must file a Large Cash Transaction Report with FINTRAC when they receive $10,000 or more in cash in a single transaction, or when multiple cash amounts total $10,000 or more within a 24-hour period. Additionally, Suspicious Transaction Reports must be filed when there are reasonable grounds to suspect money laundering, regardless of amount.

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

FINTRAC reporting obligations for real estate professionals include: (1) Large Cash Transaction Reports — mandatory for $10,000+ in cash; (2) Suspicious Transaction Reports — required when there are reasonable grounds to suspect money laundering or terrorist financing, regardless of amount or transaction type; (3) Terrorist Property Reports — required when there is knowledge of property owned by a listed person; (4) Client identification and record keeping. The $10,000 threshold includes structuring (multiple transactions designed to avoid the threshold within 24 hours).

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

Remember '$10K Cash = Must Report' — $10,000 or more in cash triggers a mandatory Large Cash Transaction Report to FINTRAC. Plus, suspicious activity must always be reported regardless of amount. When the exam asks about FINTRAC reporting triggers, recall '$10K Cash = Must Report' and 'Suspicious = Always Report.' The cash threshold is $10,000, and suspicious activity reporting has no minimum amount.

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

Two key numbers: $10,000 for cash transaction reports, and $0 (no minimum) for suspicious transaction reports. The cash threshold includes multiple cash amounts totalling $10,000 within 24 hours.

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

A buyer makes a $50,000 deposit on a property, paying $12,000 in cash and the remainder by certified cheque. The licensee must file a Large Cash Transaction Report with FINTRAC because the cash portion exceeds $10,000. The report must be filed within 15 calendar days. The certified cheque portion does not trigger this specific reporting requirement.

Question

Regulatory ComplianceBCEASY

Under FINTRAC regulations, which of the following triggers a mandatory reporting obligation for a BC real estate licensee?

Answer Options

A

Any cash transaction over $5,000

B

Receipt of $10,000 or more in cash (or multiple cash amounts totalling $10,000 or more within 24 hours) in a single transaction

C

Any electronic funds transfer regardless of amount

D

All transactions involving foreign buyers