To help REALTORS® ensure Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) compliance, the Canadian Real Estate Association (CREA) has revised its FINTRAC Regime materials.
The changes highlight areas where REALTORS® are encountering difficulties in complying with Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act and regulations.
Significant changes were made to the following forms:
1. Brokerage Risk Assessment
The revised form, which intends to assist brokers step-by-step in determining their brokerage’s risk of money laundering or terrorist financing, now mirrors FINTRAC’s Risk Assessed Guidance and uses plain language familiar to REALTORS®. Sales representatives do not need to complete this form.
2. Receipt of Funds record
Design changes were made to the Receipt of Funds record to emphasize that information regarding the person providing the funds must be recorded. Previously, REALTORS® were instructed to fill out two forms: one for the funds and one for the person(s) providing the funds. Now, only one form needs to be completed.
3. Client Risk section of ID forms
REALTORS® are still required to risk-rate their clients. However, the method has now shifted to a question/scoring approach instead of placing clients in “risk buckets.” The purpose of scoring is to identify high-risk clients and for the brokerage’s high-risk mitigation practices to be effectively used.
Register for CREA’s Upcoming FINTRAC Webinar
CREA will be hosting a free information session following important updates to its FINTRAC Regime materials.
Join Simon Parham, CREA’s General Counsel, on Thursday, February 22, at 11:00 am (PST) as he offers further insights and answers your questions about the latest updates to CREA’s FINTRAC Regime materials. Register here.
To access the updated materials and watch a recording of the February 22 FINTRAC Webinar given by CREA’s General Counsel, Simon Parham, please visit CREA’s Member Portal. Updated FINTRAC forms are also available on CREA WEBForms®.