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5. Establishing a compliance program
Real estate brokers acting on their own account and real estate agencies must develop and implement a strong compliance program in accordance with the regulatory requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
The program forms the basis for meeting all of your reporting, record keeping, client identification and other know-your-client requirements under the PCMLTFA and its regulations.
The compliance program required by FINTRAC must include the following five elements:
- Appointing a compliance officer who is responsible for implementing the program
- Developing and applying written compliance policies and procedures that are kept up to date and include enhanced measures to mitigate high risks
- Assessing and documenting risks related to business activities and relationships
- Developing and maintaining a written, ongoing compliance training program for your agency employees and brokers
- Conducting a review of the overall effectiveness of the compliance program (policies and procedures, risk assessment, and ongoing training program) at least every two years and keep supporting documents
It is important that real estate agencies and real estate brokers acting on their account refer to FINTRAC's guideline when developing their compliance program to ensure that they are strictly complying with the requirements of the PCMLTFA. In this regard, licensees can visit FINTRAC's website.
