FINTRAC Audits of Real Estate Brokerages

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Vancouver, British Columbia, March 18, 2016: The Real Estate Council of BC is encouraged to learn of FINTRAC’s focus on the risks of money laundering within Canada’s real estate sector. We support FINTRAC taking appropriate action against brokerages that do not comply with their federally legislated requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

The Council’s mandate as a provincial regulator is to enforce the licensee conduct requirements of the Real Estate Services Act. We have and will continue to support FINTRAC in its efforts to educate licensees and brokerages in BC about their reporting requirements under the PCMLTFA. In 2014 and 2015, the Council took steps to ensure that all licensees were aware of the resources and continuing education available to assist them in meeting FINTRAC reporting requirements. This included newsletters, email communications, and updates to the Professional Standards materials:

We note that in its 2015 Annual Report, FINTRAC states that it intends to “develop sector-specific risk-based approach workbooks to further augment entities’ ability to comply”. The Council looks forward to FINTRAC’s introduction of these additional guidance materials for real estate licensees, which we will certainly bring to the attention of licensees.

The Independent Advisory Group is currently examining issues of licensee misconduct, and will make recommendations to the Council at the end of May about licensees’ legal obligations and practices that may pose risks to consumers and the wider public. We look forward to receiving and implementing recommendations that will strengthen the regulation of licensee conduct and increasing public protection.

Reporters may address further questions to:

Marilee Peters, Communications Officer

Real Estate Council of BC

mpeters@recbc.ca 604-683-9664