Feds Lax On Real Estate Sector Compliance With Anti-Money Laundering Law:
Ottawa must strengthen its efforts to combat money laundering in real estate, critics say that the documents revealed that dozens of companies have not shown how they are trying to detect suspicious transactions.
The Canadian Press reported this week that at least 85 companies not compliance plans flag suspicious transactions are fully implemented - including cases where money laundering is suspected - nearly 15 years after it was legally obliged to do so.
"We can have the best rules around holding money laundering out of our real estate market, but if no one enforces the rules, what are they?" said David Eby, a spokesman for NDP housing in BC, where some said the housing market is particularly susceptible to money laundering.
"The Realtors seem to have rules or reporting obligations seriously and Fintrac (Financial Transactions and Reports Analysis Centre of Canada) does not seem too concerned when they see the mass of non-compliance."
Fintrac data obtained through a request for access to information show that 38 companies had partially implemented a compliance regime, while another 47 did not have. The names of the companies are not included in the documents.
Data were collected from 337 reports of conformity assessment that were submitted to the federal agency to combat money laundering of about 1000 companies in the real estate sector. It's just a tape throughout the industry - there are about 20,000 real estate companies supervised by Fintrac.
Darren Gibb, Fintrac spokesman, said reports of conformity assessment are only one tool the agency uses in its execution process.
Fintrac uses data collected from compliance reports to significantly increase the number of on-site inspections is done in the real estate sector, he said.
He has also spent "much time and effort" in collaboration with the real estate sector and the Canadian Association of real estate to help real estate agents understand their obligations under the Proceeds of Crime (best money laundering) and financing terrorism, Gibb said.
But Christine Duhaime, a specialist in the fight against money laundering and the financing of the fight against terrorism lawyer, said most real estate agents who knew had no compliance plan, no compliance officer and do not know what or how a suspicious transaction report.
"I literally have never met a real estate agent across the country who really understands and complies with AML (money laundering) with full rights," Duhaime said.
The Real Estate Council of Ontario said remind its members of their legal obligations following the report of the Canadian press.
The Canadian Press reported this week that at least 85 companies not compliance plans flag suspicious transactions are fully implemented - including cases where money laundering is suspected - nearly 15 years after it was legally obliged to do so.
"We can have the best rules around holding money laundering out of our real estate market, but if no one enforces the rules, what are they?" said David Eby, a spokesman for NDP housing in BC, where some said the housing market is particularly susceptible to money laundering.
"The Realtors seem to have rules or reporting obligations seriously and Fintrac (Financial Transactions and Reports Analysis Centre of Canada) does not seem too concerned when they see the mass of non-compliance."
Fintrac data obtained through a request for access to information show that 38 companies had partially implemented a compliance regime, while another 47 did not have. The names of the companies are not included in the documents.
Data were collected from 337 reports of conformity assessment that were submitted to the federal agency to combat money laundering of about 1000 companies in the real estate sector. It's just a tape throughout the industry - there are about 20,000 real estate companies supervised by Fintrac.
Darren Gibb, Fintrac spokesman, said reports of conformity assessment are only one tool the agency uses in its execution process.
Fintrac uses data collected from compliance reports to significantly increase the number of on-site inspections is done in the real estate sector, he said.
He has also spent "much time and effort" in collaboration with the real estate sector and the Canadian Association of real estate to help real estate agents understand their obligations under the Proceeds of Crime (best money laundering) and financing terrorism, Gibb said.
But Christine Duhaime, a specialist in the fight against money laundering and the financing of the fight against terrorism lawyer, said most real estate agents who knew had no compliance plan, no compliance officer and do not know what or how a suspicious transaction report.
"I literally have never met a real estate agent across the country who really understands and complies with AML (money laundering) with full rights," Duhaime said.
The Real Estate Council of Ontario said remind its members of their legal obligations following the report of the Canadian press.
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