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- Jul 28, 2012
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- 19
Can anyone explain what FINTRAC does and how it affects real estate investing. Thank you 
FINTRAC
- Thread starter nigelwray1982
- Start date
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- Aug 30, 2007
- Messages
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It allows banks and realtors to confirm who is the buyer, and if a corporation who owns it so they know who is actually behind a financial or real estate transaction, so they can grab you if you decide to not pay your taxes, for example, or if you don't close a transaction, for example. It is now a requirement for both realtors and banks to collect this info, so that international money flow (e.g. proceeds of crime, terrorists) can be traced or taxes collected.
- Joined
- Jul 28, 2012
- Messages
- 19
Thank you mr beyer, I had a feeling if anyone knew about this it would be you.
- Joined
- May 28, 2012
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From FINTRAC website:
Who We Are
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada's financial intelligence unit, was created in 2000. It is an independent agency, reporting to the Minister of Finance, who is accountable to Parliament for the activities of the Centre. It was established and operates within the ambit of the Proceeds of Crime (money Laundering) and Terrorist Financing Act (PCMLTFA) and its Regulations.
Our Mandate
FINTRAC's mandate is to facilitate the detection, prevention and deterrence of money laundering and terrorist activity financing, while ensuring the protection of personal information under its control. The Centre fulfills its mandate through the following activities:
Working for RBC I can attest to money laundering and terrorist financing being part of our due diligence when doing home financing.
Who We Are
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Canada's financial intelligence unit, was created in 2000. It is an independent agency, reporting to the Minister of Finance, who is accountable to Parliament for the activities of the Centre. It was established and operates within the ambit of the Proceeds of Crime (money Laundering) and Terrorist Financing Act (PCMLTFA) and its Regulations.
Our Mandate
FINTRAC's mandate is to facilitate the detection, prevention and deterrence of money laundering and terrorist activity financing, while ensuring the protection of personal information under its control. The Centre fulfills its mandate through the following activities:
- Receiving financial transaction reports in accordance with the legislation and regulations and safeguarding personal information under its control.
- Ensuring compliance of reporting entities with the legislation and regulations.
- Producing financial intelligence on suspected money laundering, terrorist activity financing and other threats to the security of Canada.
Researching and analyzing data from a variety of information sources that shed light on trends and patterns in financial crime.
Enhancing public awareness and understanding of money laundering and terrorist activity financing
Working for RBC I can attest to money laundering and terrorist financing being part of our due diligence when doing home financing.
Good morning,
I'm a former FINTRAC intelligence analyst, and lead MNP's National Anti-Money Laundering (AML) Practice. To assist with their mandate of preventing, detecting, and deterring money laundering, federal AML legislation enforced by FINTRAC requires real estate sales representatives, brokers, and developers to perform certain administrative functions. They include things like: identifying clients; keeping records about those clients and their transactions; reporting certain transactions (such as those involving cash of CAD 10,000 or more, and those which are deemed suspicious); and managing their money laundering risk. The legislation also requires real estate sales representatives, brokers and developers to maintain a compliance program that ensures that they comply with current and applicable rules. That compliance program must include a training program, policies and procedures, periodic audits to assess compliance, and a documented risk management plan.
To be considered a real estate developer, an individual or entity must have sold to the public in any year after 2007:
[*]at least five new houses or condominium units;
[*]at least one new commercial or industrial building;
at least one new multi-unit residential building each of which contains five or more residential units; or
at least two new multi-unit residential buildings that together contain five or more residential units.
So far, real estate investors and landlords are not covered by AML legislation requirements in Canada.
Banks do have obligations under Canadian regulations that are more extensive than those which apply to covered real estate companies and individuals. Real estate is generally regarded as a higher risk sector for money laundering. That is to say that it is vulnerable to exploitation for money laundering, and historical cases show that it has been exploited for that purposes. For that reason, banks will generally apply more scrutiny to accounts of companies and persons involved in real estate (such as investors/landlords), as part of their risk maanagment program. That additional scrutiny may involve collecting more information about the identity of the person they are dealing with, collecting more information about expected account behaviour, and collecting more information about transactions actually conducted through accounts. They are also required to report transactions they consider suspicious, as well as large cash transactions, wire transactions, and those which are found to involve listed persons.
Please feel free to connect with me if you have additional questions about your obligations or about dealing with financial institutions that are asking more questions about your business or account.
Matthew McGuire
BA(Hons), MAcc, CA, DIFA, CAMS, AMLP
NATIONAL AML PRACTICE LEADER
INVESTIGATIVE & FORENSIC SERVICES
DIRECT 416.263.6959
CELL 416.312.0555
TOLL FREE 1.877.251.2922
701 - 85 Richmond Street West
Toronto, ON
M5H 2C9
[email protected]
mnp.ca
ca.linkedin.com/pub/matthew-mcguire/a/635/b34
I'm a former FINTRAC intelligence analyst, and lead MNP's National Anti-Money Laundering (AML) Practice. To assist with their mandate of preventing, detecting, and deterring money laundering, federal AML legislation enforced by FINTRAC requires real estate sales representatives, brokers, and developers to perform certain administrative functions. They include things like: identifying clients; keeping records about those clients and their transactions; reporting certain transactions (such as those involving cash of CAD 10,000 or more, and those which are deemed suspicious); and managing their money laundering risk. The legislation also requires real estate sales representatives, brokers and developers to maintain a compliance program that ensures that they comply with current and applicable rules. That compliance program must include a training program, policies and procedures, periodic audits to assess compliance, and a documented risk management plan.
To be considered a real estate developer, an individual or entity must have sold to the public in any year after 2007:
[*]at least five new houses or condominium units;
[*]at least one new commercial or industrial building;
at least one new multi-unit residential building each of which contains five or more residential units; or
at least two new multi-unit residential buildings that together contain five or more residential units.
So far, real estate investors and landlords are not covered by AML legislation requirements in Canada.
Banks do have obligations under Canadian regulations that are more extensive than those which apply to covered real estate companies and individuals. Real estate is generally regarded as a higher risk sector for money laundering. That is to say that it is vulnerable to exploitation for money laundering, and historical cases show that it has been exploited for that purposes. For that reason, banks will generally apply more scrutiny to accounts of companies and persons involved in real estate (such as investors/landlords), as part of their risk maanagment program. That additional scrutiny may involve collecting more information about the identity of the person they are dealing with, collecting more information about expected account behaviour, and collecting more information about transactions actually conducted through accounts. They are also required to report transactions they consider suspicious, as well as large cash transactions, wire transactions, and those which are found to involve listed persons.
Please feel free to connect with me if you have additional questions about your obligations or about dealing with financial institutions that are asking more questions about your business or account.
Matthew McGuire
BA(Hons), MAcc, CA, DIFA, CAMS, AMLP
NATIONAL AML PRACTICE LEADER
INVESTIGATIVE & FORENSIC SERVICES
DIRECT 416.263.6959
CELL 416.312.0555
TOLL FREE 1.877.251.2922
701 - 85 Richmond Street West
Toronto, ON
M5H 2C9
[email protected]
mnp.ca
ca.linkedin.com/pub/matthew-mcguire/a/635/b34