Canada: Real-Estate Firms Violate Anti-Money Laundering Rules
What Happened?
March 6, 2020: Canada’s financial watchdog FinTRAC audited 500 real estate companies, and found 172 were guilty of violating anti-money laundering rules by neither checking the identities of their clients nor reporting large cash deals to the government.
At half of the companies audited, the sales agents had no formal training on how to properly detect money laundering or verify the identity of their clients.
In response, FinTRAC is implementing an ownership registry beginning May 2020, and making it mandatory for real estate agents to take an anti-money laundering course–a first for Canada.
Source: https://www.occrp.org/en/daily/11760-canada-real-estate-firms-violate-anti-money-laundering-rules
Who Is Impacted?
Real-Estate Developers, Brokers, and Sales Representatives.
Why This Matters?
In 2019, an expert panel estimated that $5.3 billion dollars (US$ 4 billion) were laundered through real-estate transactions in Canada in 2018.
With their 2019 budget increase from the Canadian government, FinTRAC has launched an aggressive front to combat this activity in our economy.
“This offensive is sending a strong message to the sector and to people who might seek to exploit it that we all are determined to protect the Canadian people and the economy.” – FinTRAC spokesperson, Erica Constant
What’s Next?
The provinces hope these actions from the Regulator will prevent the use of trusts, corporations, or partnerships to hide transactions from public view.
learn more
Is your AML compliance too expensive, time-consuming, or ineffective?
iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.
Request a demo today.
2025 Outlook: Data Privacy and Security in KYB, KYC, AML Compliance
In today’s rapidly changing digital landscape, data privacy and security are more crucial than ever for compliance teams. As regulations tighten and cyber threats evolve, businesses must prioritize innovative solutions. Enter edge computing, a game-changer for KYC,...
The Future of Document Verification: From Frustration to Simplicity
Transforming Identity Document Verification: A Seamless Customer Experience
Tired of outdated, time-consuming document verification processes? Discover how iComply’s seamless solution enhances customer experience while ensuring security and compliance.
Revolutionizing KYC for Insurance Companies: A Smarter, Simpler Approach
KYC in Insurance: Streamlining Compliance and Building Trust
Enhance customer experience and strengthen fraud prevention with iComply’s comprehensive KYC solution for insurance companies. Streamline identity verification, risk assessment, and ongoing monitoring.
The Travel Rule Challenge on Layer 2 Solutions: How iComply Helps VASPs Navigate AML Compliance
The FATF Travel Rule poses a significant challenge for VASPs using Layer 2 solutions like the Lightning Network due to transaction anonymity and off-chain processing. iComply offers a holistic AML compliance solution, including KYB software, AI-driven monitoring, and industry leading Travel Rule compliance expertise, to help VASPs navigate these challenges seamlessly.