REMINDER: FINTRAC Act will apply to mortgage sector this fall
| July 30, 2024
In November 2023, this summary was published to give RECA mortgage licensees a heads up that new federal legislation would soon apply to the mortgage sector.
Come this October, FINTRAC has announced that the mortgage sector will now be subject to the same obligations as financial institutions and other businesses (including real estate brokers) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act). What this means is that RECA mortgage licensees will also now be obligated to report certain financial transactions, such as large cash deposits, international electronic funds transfers, and suspicious activity. The Act is designed to combat money laundering and the financing of terrorism in Canada.
As of October, 2024, all mortgage licensees will be responsible for:
• establishing and implement a compliance program
• reporting transactions, including the submission of the following reports to FINTRAC:
• Suspicious Transaction Report
• Terrorist Property Report
• Large Cash Transaction Report
• keeping records, including the transactions above, mortgage loan records, information records, receipt of funds record, large virtual currency records and others
• knowing your client by verifying their identity using the methods listed in the Act
• applying any additional ministerial directives when/if informed by FINTRAC
Avoid penalties for non-compliance and ensure you are up to date by learning more about this important legislation.
If you have any questions on how the obligations under the Act will apply to mortgage licensees, please reach out to gsiegle@reca.ca.
