Frintrac Q & A Part 1

Q: Do I have to complete any Records if the transaction was initiated

prior to the entry into effect of the new regulations on June 23rd?

A: FINTRAC advises that a seller's agent who took a listing pre-June 23rd would

have to ID their client ONLY if an offer in regards to that listing is accepted on or

after June 23rd. For the buyer's agent, the same would apply. A Receipt of Funds

record would be required only if the funds were provided on or after June 23rd.

 

Q: What should a brokerage do if a client absolutely refuses to provide

the information required to complete either the Identification Information

record or the Receipt of Funds form?

 A: If the client refuses to provide required identification or personal

information, then the REALTORĀ® must not represent them. Proceeding with a

transaction without identifying your client means that the REALTOR is in violation

of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. If a

client refuses to supply their identification, the sales person involved should also

consider filing a suspicious transaction report.

Q: If a client refuses to disclose his personal information for the

Individual Information Record, can I simply get the client to stroke off that

part of the form and initial it?

 A: No - you would be in contravention of the law. All relevant information

required by the Records must be provided.

 

Q: What should a brokerage do if an unrepresented party absolutely

refuses to provide the information required to complete either the

Identification Information Record or the Receipt of Funds form?

 

A: A brokerage is required to take all reasonable measures to acquire

required information for an unrepresented buyer or seller. However, if the

unrepresented individual refuses to provide this information, this must be noted

on the relevant Record and the agent must also decide whether to send a

suspicious transaction report to FINTRAC.

Q: What happens if my client refuses to fill out a Identification

Information Record or Receipt of Funds Record?

 

A:It is the broker or brokerage representative not the client who has the legal

obligation to complete and retain the relevant Record to be kept on file, based on

information from the client/customer. As noted previously, a REALTORĀ® must

not represent a client who refuses to provide the required information.

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