Fintrac: What you need to know
Changes to the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act are coming soon. As of June 23, 2008, the federal government requires all brokers and sales representatives to document proof of a client’s identity at the time the transaction completes (photo identification like drivers licence or passport, written agreement from buyer authorizing a 3rd party to act as agent & proof that appropriate identifiaction was produced or copy of official corporate documentation showing provisions relating to binding the corporation to the transaction). This is one of many changes that are about to impact the Canadian real estate industry in a number of different ways.
Suspicious transaction must be reported & not completed. Brokers and sales representatives who know or suspect that a transaction is related to property owned or controlled by or on behalf of a terrorists or money launderers, must not complete the transaction.
Stricter requirements for record keeping for brokers & sales representatives now means that most will only accept bank drafts or money orders for deposits held for transactions...no cash or personal cheques.