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FINTRAC, the federal regulator for financial and brokerage companies in Canada, has imposed fines of USD 66,742.50 on Park Georgia Realty in Vancouver and USD 31,350 on Re/Max All-Stars Realty in Unionville for non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Park Georgia Realty was found to have committed the following violations:

• Failure to develop compliance policies and procedures that sufficiently covered the requirements
• Failure to assess and document the money laundering or terrorist activity financing risks of its geographic locations, products and delivery channels, and clients and business relationships
• Failure to include the frequency and how training would be maintained on an ongoing basis in its training program
• Failure to establish and document the prescribed review of its compliance policies and procedures, risk assessment and training program
• Failure to keep prescribed information in client information and receipt of funds records.

The violations were identified during a compliance examination in 2018.

Re/Max All-Stars Realty was fined for failure to provide, in accordance with a notice, most of the requested compliance program documentation for purposes of a compliance examination in 2019.

Both brokerage agencies have appealed the decision to the Federal Court of Canada. FINTRAC is recognised for seeking to cooperate with companies efficiently and transparently. However, some might wonder whether the news of sanctions for the two largest brokerage firms in Canada raises concerns for business. While this is understandable, it is better view it as a reminder for financial institutions to ensure they maintain a close and consistent focus on compliance.

Taking financial compliance and the scrutiny of regulators seriously is an essential factor for long-term success. This involves creating appropriate compliance programs, risk assessment procedures and employee training, as well as ensuring the appropriate level of documentation of anti-money laundering and terrorist financing processes. Expert advice can also assure that potential regulatory pitfalls and oversights are avoided.

By taking financial compliance as seriously as their key business operations, real estate brokers and financial institutions can enjoy long-term success without risking the damage caused by regulatory non-compliance.

At PayCompliance, we have 18 years’ experience of supporting the success of payment institutions across 6 countries. Our customised AML and ATF compliance services to help you meet FINTRAC requirements as a Real Estate broker, sales representative or developer.

For more information, go to: https://paycompliance.com