At Oakwyn, we want to make sure we are continuing to provide value and insight within the Real Estate Industry. This includes sharing our knowledge and experience with our community.
For this month Oakwyn Managing Broker, Michelle Adams is here to shed light on new and revised regulatory amendments from the Financial Transactions & Reports Analysis Centre of Canada (FINTRAC).
Read on for Michelle’s advice and get in the know, with Oakwyn.
Business Relationships
Previously, REALTORS® would enter into a business relationship after 2 transactions, however now, a business relationship is created the first time an agent verifies a client’s ID. This means agents need to fill out a new Individual FINTRAC form for every transaction, plus you must fill out Part D (most agents have been filling out Part D anyways). Please also DO NOT use abbreviations for anything- use full names, full occupation titles, and full identification types (eg. write “Driver’s License” instead of “DL”).
Beneficial Ownership
When working with a Corporation/Entity, you now must obtain beneficial ownership information when confirming the existence of an entity and take steps to verify its accuracy. Beneficial owners are individuals who directly or indirectly own or control 25% or more of a corporation or trust.
Ensure you are providing corporate registry documents, completing the corporate FINTRAC, completing the Beneficial Records, providing Source Information, and confirming the signing Authority.
To search for Beneficial Ownership, you can go to the “Land Owner Transparency Registry” on MyLtsa. If your search comes back without any results, take a screenshot of the “no results found” page and save it to your Skyslope file, so that the office has a record that you took measures to search it. You will need the names and addresses of all directors and beneficial owners. In order to verify the accuracy of this information, you will need to request and submit documents to the office such as the Certificate of Incorporation, Notice of Articles, and any document found in number 4 of the “Beneficial Ownership Record” Form.
Politically Exposed Persons (PEP) and Head Of International Organization
Agents must determine and declare if they are working with a PEP or an HIO. A Domestic PEP can be anyone who has held a political position in the last 5 years: such as a Mayor, Judge, or MP etc. A Foreign PEP could have been a Head of State or Government Member. An example of a HIO would be the head of the UN or the World Health Organization. There is a new form to fill out and should you find yourself in this situation, please reach out to a Managing Broker.
Virtual Currency Reporting
REALTORS® must report virtual currency transactions of $10,000 or more to FINTRAC when the funds are received in one or more transactions within a 24 hour period. Oakwyn does not accept transactions done with virtual currency at this time, however, new rules are in place to deal with it.
Record Keeping
Previously, REALTORS® were required to keep records of only certain reports sent to FINTRAC but now REALTORS® are required to keep every report sent to FINTRAC.
Additional Sources
In This Together
We are in this together to improve the real estate industry! Let’s stay on top of what we need to do to continue to lead the way in providing professional, ethical, and excellent service to those we serve.
For more information check out our website, or contact us!
About our Broker Break series:
These blogs aim to leverage our Managing Brokers’ industry experience into content to better serve our community. Together, we will continue to stand up for the ways in which we can transform the industry, from the inside out.
