New Anti-Money Laundering Regulations
The Department of Finance and FINTRAC are currently proceeding with an aggressive plan to implement new anti-money
laundering and anti-terrorist financing (AML/ATF) regulations in mid 2008 and 2009. New regulations affecting the real
estate industry take effect on June 23rd, 2008.
REALTORS® have consistently supported the federal government's efforts to monitor, document and report known
suspicious and illegal activity since 2002, and have been meeting regularly with officials since 2005 to develop a clear
implementation protocol for the adoption of the new requirements. Despite this, licensees are being asked to perform
functions that they are simply unable to do.
We also believe that neither the federal government, our industry, nor the general public is adequately prepared for the
June implementation deadline.
Among the major concerns that REALTORS® have are:
The Federal Government is unprepared for the June 23rd, 2008 deadline placing REALTORS® at risk of noncompliance.
The interpretations and guidelines for the new regulations remain incomplete.
Huge loopholes in the legislation still remain. For example, the private sale market is not captured under the
regulations. As a result, criminal activity can and will continue to operate through these channels.
Government will be forcing salespeople into a law-enforcement role.
REALTORS® will be required to identify the client of a cooperating Broker. This will leave unsecured private
information in every real estate office.
Under the new rules, REALTORS® will now be required to ask for and verify the identity of private buyers or sellers
individuals with whom they have no legal or contractual obligation.
REALTORS® do not have the tools to identify beneficial owners, third party participants, or assignees.
The industry is not prepared, in terms of procedures or security resources, for the major increase in personal
information that will evolve with the new regulations.
REALTORS® urge the government of Canada todelay the enforcement
of the new anti-money laundering and
anti-terrorist financing regulations until such a time that guidelines are clear for all concerned. Industry must be given an
appropriate amount of time to properly prepare - and thus continue to function as a partner with government in combating
REALTORS® urge the government to
rescind the requirement for identifying and recording the personal information
of any individuals with whom they have no legal relationship. They also call on the government to close major loopholes in
the regulations by regulating the private sale and For Sale By Owner Industries immediately.
REALTORS® call upon the Government of Canada toinitiate a public campaign to educate the general public
respect to the mandatory new client identification, record keeping, and reporting requirements as authorized under the
Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
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RE/MAX Realty Specialists Inc.
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