These are compiled from questions members have asked about the new

FINTRAC compliance requirements, and updated as required.

Issued: June 26, 2008

Q: What should a brokerage do if a client absolutely refuses to provide

the information required to complete either the Identification Information
Record or the Receipt of Funds form?
A: If the client refuses to provide required identification or personal
information, then the REALTOR® must not represent them. Proceeding with a
transaction without identifying your client means that the REALTOR is in violation
of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. If a
client refuses to supply their identification, the sales person involved should also
consider filing a suspicious transaction report.

Q: If a client refuses to disclose his personal information for the

Individual Information Record, can I simply get the client to stroke off that
part of the form and initial it?
A: No – you would be in contravention of the law. All relevant information
required by the Records must be provided.

Q: What should a brokerage do if an unrepresented party absolutely

refuses to provide the information required to complete either the
Identification Information Record or the Receipt of Funds form?
A: A brokerage is required to take all reasonable measures to acquire
required information for an unrepresented buyer or seller. However, if the
unrepresented individual refuses to provide this information, this must be noted
on the relevant Record and the agent must also decide whether to send a
suspicious transaction report to FINTRAC.

Q: What happens if my client refuses to fill out a Identification

Information Record or Receipt of Funds Record?
A: It is the broker or brokerage representative not the client who has the legal
obligation to complete and retain the relevant Record to be kept on file, based on
information from the client/customer. As noted previously, a REALTOR® must
not represent a client who refuses to provide the required information.

Q: Should our Board take a listing where the personal information

required for FINTRAC compliance has not been given?
A: The issue of collecting personal identification information for a Record is
an obligation of the broker or agent, who are required by law to comply. There is
no role for the Board in ensuring that Records are properly completed.

Q: Who actually has to fill out the Receipt of Funds Record?

A: The agent of the buyer assuming that the deposit goes into the account of
a licensed practitioner. If there is no buyer’s agent involved, then the listing
broker would be required to complete it.
FINTRAC Compliance Q&As June 24, 2008 Page 2

Q: Does a member have to complete a Receipt of Funds Record if the

deposit does not go into an account of a licensed practitioner (i.e., it goes
directly into a lawyer or builder’s account)?
A: No. A member only has to complete a Receipt of Funds Record if the
deposit goes into an account of a licensed practitioner. In other words, if the
deposit goes directly into the account of a builder, lawyer or notary, or developer,
a Receipt of Record does not have to be completed by a member acting as the
buyers' agent.

Q: Does a member have to ask for the trust account information of

another member when completing a Receipt of Funds Record?
A: No. In a transaction when two real estate agents are involved, the buyers
agent must still complete a Receipt of Funds Record, but they do not have to
include the information of the account where the listing broker will deposit the
cheque (i.e., listing broker's trust account). The space for the trust account
information will still be on the form because in a dual agency situation the listing
agent is still responsible for completing the Receipt of Funds Record and
including their trust account information.

Q: Would Errors and Omissions insurance cover me, if I tried to comply

and made a mistake on a Record and was later fined?
A: Likely no - insurance generally will not cover you against non-compliance
with the law, but you need to ask your insurer this question.

Q: Are we required to complete either a Receipt of Funds Record or a

Corporate Identification Information Record for a financial institution (e.g.,
acting as seller under a Power of Sale) or for a government entity who is
buying or selling a property.
A: No. Financial institutions and government are exempted under the Act.
So there is no obligation to fill out either Record with respect to a bank act as a
seller under a power of sale.

Q: When we have an estate sale, who needs to be identified for the

purpose of the Receipt of Funds Record or Individual Identification
Information Record?
A: REALTORS® have absolutely no requirement to identify beneficial
owners. The individual executor of the estate would have to be identified, not the
beneficiaries of the estate. If the seller is a financial institution, the bank official
does not have to be identified either.
FINTRAC Compliance Q&As June 24, 2008 Page 3

Q: When we are acting for a buyer or seller and the other party is also
represented by a licensed registrant, am I required to get a copy of the
other party’s Identification Information Record or provide a copy of the
Identification Information Record that I completed?
A: There is no cross-client identification. You do not exchange Records with
the other agent. Both the buyer and listing agent must identify their respective
clients only and keep that information in their respective files for five years.

Q: Do I have to complete any Records if the transaction was initiated

prior to the entry into effect of the new regulations on June 23rd?
A: No - all transactions initiated prior to June 23rd fall under the old rules.

Q: Are there any specific FINTRAC compliance forms for Commercial

Leasing? Or do we use the same ones as sales?
A: Leasing is not captured by the regulations, only the purchase and sale of
real property.

Q: Some media reports said that brokers have to keep the new FINTRAC
records for seven years. Your material says 5 years. Which is it?
A: This information is not correct. Brokers are required to keep the
information on file and available in FINTRAC requests for FIVE (5) years.

Q: Are new builders obligated to collect the above information as

REALTORS® are for compliance with FINTRAC? What about lawyers?
A: Builders are not captured by the new Federal AML/ATF regulations until
February 20, 2009. Lawyers are not captured until December 30, 2008. While
Lawyers must conform to the new client identification and record keeping
requirements, they have no legal obligation to report this information to FINTRAC
because they are protected from disclosing because of solicitor-client privilege.
All implementation guidelines can be found on the FINTRAC website at
www.fintrac.gc.ca

Q: Do I have to make or keep a photocopy of whatever document my

client provides for ID?
A: You do not need a photocopy of the client's ID for Canadian customers,
just the critical information on it. It is recommended that you obtain a copy of the
foreign client's ID when documenting their information.
FINTRAC Compliance Q&As June 24, 2008 Page 4

Q: Who else has to report this type of information to FINTRAC?

A: Reporting entities must report suspicious and certain other transactions to
the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
In addition to real estate brokers and sales representatives, reporting entities
include the following:
• financial entities (such as banks, credit unions, caisses populaires, trust
and loan companies, and agents of the Crown that accept deposit
liabilities);
• life insurance companies, brokers, and agents;
• securities dealers, including portfolio managers and investment
counselors;
• persons engaged in the business of foreign exchange dealing;
• money services businesses;
• agents of the Crown that sell or redeem money orders;
• accountants (when carrying out certain activities on behalf of their clients);
• certain casinos.
For more information about who is considered a reporting entity, consult the
series of guidelines prepared by FINTRAC about reporting obligations.

Q: What information is required if I use an agent or mandatary for

identification purposes?
A: CREA has prepared a template agreement for members to use when
contracting the services of an agent or mandatary for the purposes of
compliance.

Q: What if I have to contact a corporation’s lawyer or accountant to

obtain the necessary information to complete the Corporation Identification
Information Record?
A: CREA has prepared a consent agreement that can be used for these
purposes.