In a recent news article it was reported that 1 million new Canadians came to…
What is FINTRAC?
FINTRAC stands for Financial Transactions and Reports Analysis Centre and is the agency that Canada’s federal government uses to monitor financial transactions in Canada. FINTRAC is charged with ensuring individuals and businesses operating in Canada’s financial sector (including real estate) comply with federal regulations to prevent money laundering, terrorist financing, and other illegal activities. In recent years, FINTRAC has been closely monitoring the Vancouver real estate market, as concerns have been raised about the potential for money laundering, terrorist financing and other illegal activities in the city’s property market.
What do we do with FINTRAC Information?
The idea is to clearly identify any buyer or seller and forward this information to FINTRAC via our real estate brokerage. Furthermore, if we Realtors suspect any wrong doing we are obliged to check off the various options in the form. We strongly support FINTRAC and take our requirements seriously in our practice. The information collected on the FINTRAC document includes:
- Full legal name
- Date of Birth
- Nature of principal business or occupation or job title
- Photos of the clients primary photo ID including drivers license, Passport, Permanent President Card.
We Realtors are required to keep all of our clients and non-clients personal information confidential as part of our privacy requirements laid out in the Privacy & Consent document from BCFSA.
Why FINTRAC and Vancouver Real Estate?
Simply put, Vancouver real estate involves a lot of money and the federal government does not want this money to be coming from or going to criminals or terrorists. FINTRAC’s approach is that disclosure of identity of real estate market participants is best way to deter and/or detect money laundering, terrorist financing, or other illegal activity.
Why is a Vancouver Realtor talking about FINTRAC?
I wrote this post to clarify for clients why we collect this personal and business information in my day to day real estate practice.
This post was also written to provide supplemental information on three video series on this site: First Time Home Buyers Guide, How to Buy a Presale in Vancouver and How to Sell a Condo in Vancouver
Why do Realtors need my personal information for FINTRAC?
Because the federal government requires Realtors and their real estate brokerages to collect the personal information all clients they work with. This includes collecting information on businesses that buy and sell
In 2008 the legislation that created FINTRAC was amended to require Realtors across Canada to ascertain the identity of their clients.
When buying or selling real estate in Vancouver, Realtors for prospective buyer and sellers are required to fill out information disclosures when preparing a real estate listing contract or a contract of purchase and sale.
Various forms provided by FINTRAC will be needed to be filled out depending on the situation. (see example above for the most common form we use)
Is FINTRAC required in Vancouver Estate?
All buyers and sellers of real estate in Canada are required to have a FINTRAC disclosure filled out.
Realtors who do not collect this information and forward it on to the Federal Government can actually face jail time. Furthermore, the brokerages where these Realtors work, can also face very large fines.
This Post Has 0 Comments