New requirements are in effect June 23, 2008

It is incumbent upon a realtor to collect photo id for each real estate transaction.

Forms released here:
http://www.humberbayshore.com/siteobjects/soeditor/lite/docs/Fintrac%20instructions%20June08.pdf

This applies to all Purchsers, Sellers, Power of Attorney and Corporations.

I'm glad that this only applies to you and our Canadian Friends north of the Border. Something like that will be here soon enough, I'm sure; but we can still buy and sell property with personal checks. Certifying Identities is not something I'm too keen on getting involved with in the near future.

Sure its one more form to fill out (as if we don't have enough paperwork), but I dont see the big deal. I can't rent a movie at blockbuster without showing my ID why can you buy a house without it?

I have no problem with the legislation; Protects the consumer.
BUT; They left the information to Realtors to dispense. I THINK THEY SHOULD HAVE MADE A FEW ADVERTS - FINTRAC

I have to agree with David. They have required us to check IDs, but they have not required any education into what a valid ID looks like, how to spot fakes, what suspicious activity to look for, and many other things.
Many of the consumers also know very little about this regulation. If you keep detailed paperwork on all your transactions anyways- it's not really a big deal- but we should be given more detailed information.

Why I hate the Canadian government

They are looking for the first agent who fails to report and they are going to hang them.

Go to Vancouver and see the crack heads selling crack on the street and they get free ride and look what would happen on your first offence.

Could the government ever implement something without the treat.
How about a free trip to Maui for the agent who keeps the best records. No they always use the hammer on the citizens who follow the laws.

It seems to me we are living in a police state.


* Failure to report suspicious transactions: up to
$2 million and/or 5 years imprisonment.
* Failure to report a large cash transaction or an electronic funds transfer: up to $500,000 for the first offence, $1 million for subsequent offences.
* Failure to meet record keeping requirements: up to $500,000 and/or 5 years imprisonment.
* Failure to provide assistance or provide information during compliance examination: up to $500,000 and/or 5 years imprisonment.
* Disclosing the fact that a suspicious transaction report was made, or disclosing the contents of such a report, with the intent to prejudice a criminal investigation: up to 2 years imprisonment.

The punishment certainly does not seem to fit the crime in this case to me. If they do not educate us properly on what to look for, how can they possibly hold us accountable? Especially with fines and imprisonment so stiff!

What exactly constitutes "suspicious behaviour"-- cause I certainly never received that memo!!

LOCALLY and to the best of my knowledge, a brokerage firm is required to appoint a senior member of the firm as their "compliance officer" who is responsible for the development, implemation, education and monitoring of their compliance program with respect to Fintrac requirements.

You might wish to consider the following in relation to “Suspicious Transaction Reports”

All Personal are to consider the following indicators, if encountered when carrying out certain activities on behalf of a client (or prospective client) and which should raise an alarm, warranting further investigation and the filing of a “Suspicious Transaction Reports” with the appropriate authorities.

• Client arrives at a real estate closing with a significant amount of cash.
• Client purchases property in the name of a nominee such as an associate or a relative (other than a spouse)
• Client does not want to put his or her name on any documents that would connect them with the property of uses different names on the Offer to Purchase, closing documents, and deposit receipts.
• Client inadequately explains the last minute substitution of the purchasing party’s name.
• Client negotiates a purchase for market value or above asking price, but records a lower value on documents, paying the difference “under the table”.

• Client sells property below market value with an additional “under the table” payment.
• Client pays initial deposit with a cheque from a third party, other than a spouse or a parent.
• Client pays substantial down payment in cash and balance is financed by an unusual source or offshore bank.
• Client purchase personal use property under corporate veil when this type of transaction is inconsistent with the ordinary business practice of the client.

• Client purchases property without inspecting it.
• Client pays rent or the amount of a lease in advance using large amounts of cash.
• Client is known to have paid large remodelling or home improvement invoices with cash, on a property for which property management services are provided.


Effective June 23, 2008 all registrants will also need to keep a client information record for every purchase or sale of real estate.

Clients Record
A client’s information record will set out your client’s name, address, date of birth and the nature of the clients principal business or occupation.

Corporate Client
If the client is a corporation, you will also need to keep a copy of the part of the official corporate records showing the provisions relating to the power to bind the corporation regarding the transaction.

Identifying Your Clients:
Currently, you have identified an individual before, you do not have to do so again if you recognize the individual. Once the changes come into effect (June 23, 2008), if you have doubts about the information collected concerning an individual’s previous identification, you will have to identify that individual again.

• If the parties to the transaction are each represented by a different real estate broker or sales representative, you will have to identify the individual or confirm the existence of the entity that you represent in the transaction.
• If some parties in a real estate transaction are not represented by a real estate broker or sales representative while other parties are,

• each real estate broker or sale representative who represents a party to the transaction will have to identify or confirm the existence of the parties that are not represented.

I would strongly urge that the aforemention information be reviewed and updated with your firm's compliance officer and/or your broker of record, as well as with the government website.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .

Great post Devil's Advocate!

I hope that this will start to be taught in the licencing program in the future, because I think leaving it to senior members in the brokerage is simply not enough-- especially with the punishments as severe as they are.

The next thing they are going to do is have our kids spy on us.

I find this law very offensive and obtrusive in a free society with "freedoms". Do we work for Revenue Canada(Canadian IRS) now.