New federal regulations came into effect!
If you are thinking of buying or selling a home, you’ll now come across a FINTRAC form which your real estate agent is required to fill out. Real estate agents must now ask for personal information and identification from their clients under new federal regulations. So what does this all mean?
Any Financial entities or money-service businesses such as cheque-cashing and money-wiring bureaus must register with FINTRAC, and clients may be asked to provide proof of identification when using those services. This includes real estate agents.
For completed real-estate transactions involving a realtor, the new rules require the agent to collect proof of their client's name, address, date of birth and occupation and store the information for five years.
What is FINTRAC?
FINTRAC stands for: The Financial Transactions and Reports Analysis Centre of Canada.
FINTRAC is an independent federal government agency with a mandate to detect, deter and prevent, money laundering, terrorist financing, and threats to the security of Canada.
FINTRAC is part of Canada's Anti-Money Laundering and Anti-Terrorist Activity Financing Initiative. The initiative is led by the Department of Finance and includes the RCMP, CSIS, Public Safety Canada, Canada Revenue Agency, Canada Border Services Agency, the Communications Security Establishment and the Department of Justice.
Why is my Realtor asking me for all this ID?
The new federal money laundering and anti-terrorist financing regulations came into effect on June 23rd, 2008. Real Estate agents and Brokers must now collect personal information and proof of identity of their clients in each and every transaction, including occupation. If the client is a corporation, realtors must obtain official corporate documents, and the names of directors. If the buyer or seller is in another city, province or country and no in-person meeting is held, realtors must now use an agent or “mandatary” to identify third parties.
Is it a legal requirement?
Real estate agents are now required by law to ask you to verify your personal information. Under the new rules, realtors will ask you for identification documents & take down factual data contained on it. They may also make a photocopy of your id for requirements related to the real estate transaction.
Documents they will now ask for include: a drivers license, passport, or residency card. They will also ask for personal information such as date of birth and occupation.
Realtors are required to keep a record of this information on file in the brokerage for a period of 5 years.
Will my information be kept confidential?
The only reason realtors now keep your personal information on file is to comply with the new federal laws. Your personal information will not be provided to anyone else except in response to a request for the federal agency responsible for compliance, The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
Why the new law?
The new regulations will bring Canada in line with international standards determined by the Financial Action Task Force, an intergovernmental body set up to fight money laundering and combat terrorism financing.
Who else reports to FINTRAC?
Other persons or businesses that must report to FINTRAC include:
• Financial entities’ including, banks & credit unions
• Life insurance companies, brokers & agents
• Securities dealers, portfolio managers and investment counselors who are provincially authorized
• Persons engaged in business of foreign exchange dealing
• Money services businesses
• Accountants and accounting firms when carrying out certain activities on behalf of their clients.
• Casinos
• Individuals and any entity importing or exporting currency or monetary instruments of $10,000 or more.
If you have any questions regarding FINTRAC please don't hesitate to give us a call. We are always happy to answer any of your questions. There is also helpful information on the Financial Transactions and Reports Analysis Centre of Canada website: www.fintrac-canafe.gc.ca/intro-eng.asp
If you or someone you know has any real estate related questions give us a call! We’re never too busy for you! Eximus…the experience YOU want” call 604-850-5040.