- Joined
- Nov 18, 2007
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- 26
Developers to comply with Fintrac in 2009.New Money Laundering Rules Target Developers.
Monte Stewart
Business Edge
September 5, 2008
Canada’s new and tighter anti money laundering laws will place extra regulatory burden on real estate developers.
Legislative changes are being made in Canada’s anti money laundering law since 2006 to bring it up to international standards. In money-laundering scheme money from criminal / terrorist activity is washed in clean or legal transaction. These transactions are difficult to trace if not reported on time.
Development companies that fail to comply with the new regulations by Feb. 2009 will be fined up to $500,000 and executives could be fined up to $100,000 each.
According to the client identification act all real estate developers who have sold five or more homes, one commercial / industrial building, and a condo or apartment complex will have to document proof of identity of their clients for each and every transaction and keep the data for up to 5 years.
In addition to above every developer must keep cash transaction record for every cash transaction of $10,000 or more and report it to FINTRAC. The developer must also report any suspicious transaction if he believes the money if being cleaned or for terrorist activity
Monte Stewart
Business Edge
September 5, 2008
Canada’s new and tighter anti money laundering laws will place extra regulatory burden on real estate developers.
Legislative changes are being made in Canada’s anti money laundering law since 2006 to bring it up to international standards. In money-laundering scheme money from criminal / terrorist activity is washed in clean or legal transaction. These transactions are difficult to trace if not reported on time.
Development companies that fail to comply with the new regulations by Feb. 2009 will be fined up to $500,000 and executives could be fined up to $100,000 each.
According to the client identification act all real estate developers who have sold five or more homes, one commercial / industrial building, and a condo or apartment complex will have to document proof of identity of their clients for each and every transaction and keep the data for up to 5 years.
In addition to above every developer must keep cash transaction record for every cash transaction of $10,000 or more and report it to FINTRAC. The developer must also report any suspicious transaction if he believes the money if being cleaned or for terrorist activity