Anti-Money Laundering Watchdog Boosts Efforts to Educate Real Estate Agents
The federal agency in charge of fighting money laundering has increased its efforts to educate real estate agents about their obligations to monitor and report suspicious transactions, the documents show.
Monitoring against money laundering created a workbook and a seminar for real estate agents, and last summer made a presentation to the Association of real estate in Canada, according to emails obtained by The Canadian Press through an application access to information.
Despite the educational efforts of the federal agency, there seems to be some uncertainty on the part of the real estate association of certain regulations.
exchange of private e-mails show officials ACI peppering financial transactions and reports analysis center, known as FINTRAC, with questions about how to interpret the rules.
Under federal law, it requires real estate agents to identify their clients, check where your money comes from and report suspicious transactions to FINTRAC and big cash.
However, a representative of the Association of Canadian real estate whose name was written notes in an email FINTRAC compliance in real estate is low.
Meanwhile, the Ministry of Finance has identified the housing sector as very vulnerable to money laundering and terrorist financing given its "very important" size and often involves large sums of money changing hands.
Those who try to hide their identity and origin of their funds can do so by performing operations by third parties and the use of complex corporate structures, the ministry said in an assessment published last year.
FINTRAC has spent "much time and effort" to work with the Association of real estate in Canada, the agency said in an email, including reviewing online training association, providing feedback on combating the manual group money laundering and help interpret policies.
"What we found usually in real estate has problems with compliance systems, policies and procedures, training and record keeping and reporting," said spokeswoman Renee FINTRAC Bercier in an email.
"The level of knowledge and resources compliance varies by industry and often is based on the size, the ability of an entity and access to resources."
Randall McCauley, vice president of government and public relations for the Canadian Association of real estate, admits that compliance is a challenge in the industry.
One reason is that some of the rules are not in sync with the way the industry works, says Mr. McCauley.
For example, under the regulations, a person who performs both transactions in several years are considered higher risk and should be subject to additional monitoring, says McCauley.
However, Mr. McCauley says it is very common for a family to sell a house and buy a new one in a very short time.
"I think there is room for FINTRAC work with us to understand the nature of the business," says McCauley.
Mr. McCauley said CREA has invested heavily in trying to get Realtors to date with federal standards, including sending two representatives on a tour of Canada to make presentations to members.
He said that despite recent efforts, FINTRAC is not doing its part.
"If you do nothing and something is done, technically, I suppose, yes that's an improvement," says McCauley.
The federal agency has not been very clear in their answers to questions of policy AIT, says McCauley.
"Any rule, regulation or law is subject to interpretation," he said, "We asked.?." How do you interpret this regulation ... and give us a clear answer "
Monitoring against money laundering created a workbook and a seminar for real estate agents, and last summer made a presentation to the Association of real estate in Canada, according to emails obtained by The Canadian Press through an application access to information.
Despite the educational efforts of the federal agency, there seems to be some uncertainty on the part of the real estate association of certain regulations.
exchange of private e-mails show officials ACI peppering financial transactions and reports analysis center, known as FINTRAC, with questions about how to interpret the rules.
Under federal law, it requires real estate agents to identify their clients, check where your money comes from and report suspicious transactions to FINTRAC and big cash.
However, a representative of the Association of Canadian real estate whose name was written notes in an email FINTRAC compliance in real estate is low.
Meanwhile, the Ministry of Finance has identified the housing sector as very vulnerable to money laundering and terrorist financing given its "very important" size and often involves large sums of money changing hands.
Those who try to hide their identity and origin of their funds can do so by performing operations by third parties and the use of complex corporate structures, the ministry said in an assessment published last year.
FINTRAC has spent "much time and effort" to work with the Association of real estate in Canada, the agency said in an email, including reviewing online training association, providing feedback on combating the manual group money laundering and help interpret policies.
"What we found usually in real estate has problems with compliance systems, policies and procedures, training and record keeping and reporting," said spokeswoman Renee FINTRAC Bercier in an email.
"The level of knowledge and resources compliance varies by industry and often is based on the size, the ability of an entity and access to resources."
Randall McCauley, vice president of government and public relations for the Canadian Association of real estate, admits that compliance is a challenge in the industry.
One reason is that some of the rules are not in sync with the way the industry works, says Mr. McCauley.
For example, under the regulations, a person who performs both transactions in several years are considered higher risk and should be subject to additional monitoring, says McCauley.
However, Mr. McCauley says it is very common for a family to sell a house and buy a new one in a very short time.
"I think there is room for FINTRAC work with us to understand the nature of the business," says McCauley.
Mr. McCauley said CREA has invested heavily in trying to get Realtors to date with federal standards, including sending two representatives on a tour of Canada to make presentations to members.
He said that despite recent efforts, FINTRAC is not doing its part.
"If you do nothing and something is done, technically, I suppose, yes that's an improvement," says McCauley.
The federal agency has not been very clear in their answers to questions of policy AIT, says McCauley.
"Any rule, regulation or law is subject to interpretation," he said, "We asked.?." How do you interpret this regulation ... and give us a clear answer "
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