FINTRAC Requirements

FINTRAC requirements for BC real estate licensees are governed by the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its associated Regulations. These rules apply to real estate brokerages and their licensees across Canada, including in British Columbia, and are administered by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Compliance with these federal obligations runs alongside provincial licensing obligations overseen by the British Columbia Financial Services Authority (BCFSA) under the Real Estate Services Act (RESA).

Under the PCMLTFA, the real estate brokerage itself is the 'reporting entity' primarily responsible for FINTRAC compliance, and the managing broker carries day-to-day responsibility for implementing the brokerage's compliance program. The BCFSA, under the Real Estate Services Act (RESA), also expects managing brokers to ensure that all licensees working under them follow applicable anti-money-laundering obligations. Individual licensees share responsibility for completing required identification and record-keeping steps on each transaction.

Under the PCMLTFA and its Regulations, BC real estate licensees must verify the identity of clients — including buyers, sellers, and anyone providing funds — using acceptable identification methods such as government-issued photo ID or dual-process identification. Identity verification must be completed as soon as practicable, and before a transaction is completed. Licensees must keep records of the identification information obtained, as required by the PCMLTFA Regulations.

Yes — under the PCMLTFA and its Regulations, when a BC real estate licensee acts for a corporation, trust, or other entity, they must take reasonable steps to confirm the beneficial ownership of that entity, meaning identifying the individuals who ultimately own or control it. This includes obtaining information about individuals who own or control a threshold percentage of the entity; consult the current FINTRAC guidance for the precise ownership threshold. Proper records of beneficial ownership information must be retained in accordance with PCMLTFA record-keeping requirements.

A Suspicious Transaction Report (STR) must be filed with FINTRAC when a BC real estate licensee has reasonable grounds to suspect that a transaction or attempted transaction is related to money laundering or terrorist financing under the PCMLTFA. The obligation to file an STR arises regardless of the transaction amount and applies even if the transaction is not ultimately completed. STRs must be filed as soon as practicable after the licensee determines that reasonable grounds to suspect exist.

Yes — under the PCMLTFA, real estate brokerages in BC must report large cash transactions to FINTRAC when they receive cash of a prescribed threshold amount or more in the course of a single transaction; consult the current FINTRAC guidance for the exact dollar threshold, as it is set by federal Regulation. This obligation applies to the brokerage as the reporting entity and must be completed within the timeframe specified in the PCMLTFA Regulations. Licensees should ensure any cash received in connection with real estate transactions is promptly brought to the managing broker's attention.

BC real estate licensees must collect, use, and disclose personal information in accordance with the Personal Information Protection Act (PIPA) of BC; however, PIPA contains an exception that permits disclosure of personal information without consent when required by federal law such as the PCMLTFA. This means that disclosing client information to FINTRAC pursuant to a mandatory reporting obligation under the PCMLTFA does not violate PIPA. Licensees should nonetheless limit the personal information they collect to what is necessary for FINTRAC compliance and their real estate services mandate.

Yes — the PCMLTFA and its Regulations require real estate brokerages to establish and maintain a written compliance program that includes a compliance officer, written policies and procedures, a risk assessment, an ongoing training program, and a two-year effectiveness review. The managing broker typically acts as or appoints the compliance officer responsible for overseeing the program. The BCFSA may also consider the adequacy of a brokerage's compliance program when assessing overall conduct under the Real Estate Services Act (RESA).

Under the PCMLTFA and its Regulations, BC real estate brokerages must retain records related to client identification, beneficial ownership, transaction details, and any reports filed with FINTRAC for a minimum period set by the Regulations; consult current FINTRAC guidance for the precise retention period. Records must be kept in a form that allows them to be provided to FINTRAC or law enforcement authorities within a reasonable timeframe upon request. These FINTRAC record-keeping obligations are separate from, but run alongside, the trust account and transaction record-keeping requirements imposed by the Real Estate Services Act (RESA) and its Rules.

Non-compliance with the PCMLTFA can result in federal administrative monetary penalties or criminal prosecution by federal authorities, separate from any provincial consequences. The BCFSA may also take regulatory action under the Real Estate Services Act (RESA) against a licensee or managing broker whose failure to implement proper FINTRAC procedures amounts to conduct that is contrary to their professional obligations. The severity of penalties depends on factors such as the nature, frequency, and circumstances of the non-compliance, as assessed under the PCMLTFA penalty framework.