Wednesday, July 2, 2008

New Money Laundering Terrorist Financing Bill Takes Effect

Effective June 23, 2008 new federal money laundering and anti-terrorist financing regulations came into effect which affects REALTORS® across Canada.
Since 2001 when the Canadian government first established anti-money laundering and terrorist financing legislation, we as REALTORS® have been legally required to report any cash transactions of $10,000 and more as well as any real estate transactions that appeared suspicious in nature. This latest legislation known as BILL C-25 the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), adds significant new reporting requirements for licensed real estate Sales Representatives and Brokers.
REALTORS® are now required by law to ask for, verify and document the personal information of buyers and sellers including date of birth and occupation. This identification must be supported by some form of government issued documentation which includes a birth certificate, driver’s license, passport or residency card. Provincial health cards are not acceptable and consumers are urged not to disclose their Social Insurance Numbers for the purpose of provding ID. Further, under this new legislation REALTORS® and their respective brokerage offices are required to complete a “Receipt of Funds Record.” This document must be completed for any amount of funds received whether it is cash, cheque or any other form and must include information pertaining to the individual real estate transaction to which the funds are being applied.
In order to comply with federal law, REALTORS® must retain your personal information on file for a period of five (5) years. It will not be used in any commercial way and will not be provided to anyone except to a request by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the federal agency responsible for compliance.
These new compliance requirements which supersede the Privacy Act, is Canada’s newest legislative attempt to curtail money laundering and terrorist financing. FINTRAC collects, analyzes and discloses financial information and intelligence on suspected money laundering and terrorist financing activities. Those of us engaged in the real estateb profession along with financial institutions, lawyers, accountants and others are now required by law to assist in combating criminal activities through the use of illicit, money laundered funds. Thanks to the proliferation of organzied crime and terrorist groups known to reside in this country, it would appear that the age of innocence for Canadians is over.

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Royal LePAGE Locations North (Brokerage)

330 First Street, Collingwood, ON L9Y 1B4


Direct: 705-443-1037

Office: 705-445-5520 ext 230


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Rick relocated to Collingwood from Toronto in 1985 through a transfer with Goodyear Canada. In 1987 Rick was recruited by a major client of Goodyear’s, managing their Canadian business based in Barrie before moving to Chicago in 1992 as Vice President of Sales & Marketing. Upon returning to Canada in 1996, Rick ran an industrial products manufacturing company in Stratford, Ontario. In 1998 Rick returned to Collingwood with his two children. Rick is a licensed real estate Broker with Royal LePAGE Locations North in Collingwood and holds his MVA designation (Market Value Appraiser-Residential). He is an active volunteer in the community serving several years on the Board of Directors with the Collingwood Chamber of Commerce as Treasurer, 6 years on the Board of Directors for the Southern Georgian Bay Association of REALTORS® of which he is the Past President (2008) and currently serves on a committee with the Ontario Real Estate Association. Rick is a diverse executive manager with extensive experience in strategic planning, manufacturing, finance, human resources and quality assurance management.