FINTRAC has recently updated its guidance on politically exposed persons (PEPs), heads of international organizations, and their associated risks — changes that directly affect how brokerages assess, document, and monitor high-risk clients. The updated guidance provides clearer direction on the heightened bribery and corruption risks linked to PEPs and outlines the enhanced due diligence steps that must be taken when such clients are identified.
FINTRAC has also published a series of money laundering and terrorist financing indicators designed to help reporting entities identify suspicious behaviours and transactions that may require a Suspicious Transaction Report (STR). These indicators offer practical examples of red flags connected to corruption, fraud, and other criminal activity. When used alongside your brokerage’s risk-based approach, they can help you determine when “reasonable grounds to suspect” has been met; a threshold essential for accurate and timely STR reporting.
For all agents, these updates are an opportunity to strengthen your compliance practices, better understand your brokerage’s policies, and sharpen your ability to recognize and report potential financial crime risks. Staying familiar with FINTRAC’s latest guidance helps protect your business, supports public trust, and safeguards the integrity of the real estate sector as a whole.
You can review FINTRAC’s updated guidance here: