Verifying the identity of your clients has always been one of the most important responsibilities you carry as a licensed real estate professional. Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act), this process is essential for removing anonymity from financial transactions and protecting Canada’s real estate market from money laundering, terrorist financing, and sanctions evasion.
With new regulations that came into effect October 1, 2025, members are advised that FINTRAC has updated its guidance on client identification, and these changes carry direct implications for the real estate sector.
For all businesses subject to the Act, the changes now allow you to rely on an agent or mandatary to verify the identity of not only individuals, but also corporations and entities. Before this update, agents or mandataries could only be used to verify individuals. As of October 1, 2025, they can also be used to verify corporations and entities.
For real estate professionals specifically, there is a new requirement to verify the identity of unrepresented parties, those who are involved in a purchase or sale of property without a real estate agent. In addition to verifying identity, agents must keep an information record on these parties and complete the necessary third-party determination.
Real estate professionals are encouraged to review FINTRAC’s updated guidance on client identification, methods of verification, and record-keeping to make sure their compliance practices are up to date.
For more information, see these resources from FINTRAC:
Professional Standards