real estate brokers

Real estate brokers and realtors have been the subject of much FINTRAC scrutiny; in part because it has been fashionable to conflate housing price rises with the theorized prevalence of money laundering. The AML Shop is the FINTRAC vendor of choice for one of the largest networks in Canada, and has worked with brokerages across the country to create right-sized programs that satisfy regulators. Most often, we are called in when a brokerage has received notice of an examination, at which point we help create action plans to achieve the best possible outcome, including attending the examination with you and collaborating afterwards to remediate any gaps. The AML Shop is with you every step of the way!

REAL ESTATE BROKERAGES AND ELECTRONIC COMPLIANCE ASSESSMENT REPORTS

As part of its enhanced risk-based supervisory approach, FINTRAC has recently implemented the use of electronic questionnaires consisting of a self-assessment and request for compliance and business information. The questionnaires may take a variety of forms depending on the sectors, organizations, and assessment objectives and represents the diversification of tools and interventions to promote compliance.  This new process will assist FINTRAC by leveraging data to assess the effectiveness of the compliance programs and MLTF risks of reporting entities.

Similar to a traditional FINTRAC examination, the process begins with a FINTRAC Compliance Officer contacting the Reporting Entity by telephone to notify them that they have been selected. During that call FINTRAC and the Reporting Entity will agree on a date for the FINTRAC representative to conduct a Compliance Officer interview.  This telephone call is followed by a written notification, which is accompanied by the electronic questionnaire.  The questionnaire may request details about Reporting Entities operations, including among other things, compliance program such as the risk assessment and two year effectiveness review, the type and volume of transactions that were conducted during the previous year, as well as incidences of transactions for which there were high-risk or potentially suspicious indicators present. The responses to this questionnaire informs the interview with the FINTRAC Compliance Officer.  After the interview, Reporting Entities can expect to receive a supervisory letter outlining deficiencies or areas for improvement including aspects of the program that require updating, as well as expected actions and recommendations.  

FINTRAC has stated that its electronic questionnaires constitute an examination and the responses that a Reporting Entity provides in the questionnaire or during the interview could result in FINTRAC issuing a monetary penalty or referral for criminal sanctions. 

Reach out to us at contactus@theamlshop.ca if you have been selected and need assistance in preparing your responses or preparing for your interview.