As BC and Canada continue the fight against money laundering, real estate professionals have an important role to play. On June 1, 2021, new regulatory requirements from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) come into effect for the real estate sector. The changes relate to:
- When to verify the identity of persons and entities — will open in a new tab
- Methods to verify the identity of persons and entities — will open in a new tab
- Know your client requirements, including – Business relationship — will open in a new tab requirements, Ongoing Monitoring — will open in a new tab, Beneficial Ownership — will open in a new tab, Third party determination — will open in a new tab requirements, and Politically Exposed Persons/Head of International Organizations
- Record keeping — will open in a new tab requirements.
In BC, the Land Ownership Transparency Registry (LOTR) became publicly searchable on April 30, 2021. It is a new tool for real estate professionals in this province in meeting their anti-money laundering (AML) obligations.
New AML Resources from RECBC
To support you in meeting your AML obligations, RECBC has developed a number of new resources, now available on our updated Knowledge Base and in our topic-based Regulatory Resources Index.
- Review RECBC’s Anti-Money Laundering Information for a concise, easy-to-read explanation of the requirements for real estate professionals.
RECBC’s Corporate Registry Information will assist you in understanding the corporate registry and the information available through the registry.
The Land Owner Transparency Act (LOTA) Information will assist you in understanding the Act and what can be found in the Land Owner Transparency Registry.
- The Land Title and Survey Authority (LTSA) Information explains what the LTSA is and the types of information that can be found there.
RECBC’s new Anti-Money Laundering Guideline will help you to understand your AML obligations when working with clients and unrepresented parties and how to report suspected money laundering or terrorist financing activities. It includes sections on discussions with clients, considerations when working with buyers, sellers or unrepresented parties, and professional and ethical obligations.
To meet your FINTRAC Know Your Client requirements, RECBC recommends using the tools available: LOTR, LTSA and the Corporate Registry.
It is recommended that you perform a LOTR search on a buyer client before entering into a buyer’s agency agreement or, if no agreement is entered into, before writing an offer. See Considerations when working with a buyer client to learn more.
It is recommended that you perform a title search at the Land Title Office on the property and a LOTR search on both your seller client and their property at the time your brokerage enters into a listing agreement with your client. See Considerations when working with a seller client to learn more.
Our new video showcases how to talk with your clients about the new requirements.
Find answers to common questions about the changes to requirements and practices for the real estate sector.
New Regulatory Requirements for the Real Estate Sector is a concise summary of the changes effective June 1, 2021, provided by FINTRAC.
If you have not yet completed RECBC’s mandatory continuing education course, Anti-Money Laundering for Real Estate Professionals, now is a great time to register. The course will be updated to reflect the new requirements coming into effect June 1. Register today! — will open in a new tab
RECBC’s Professional Standards Advisors are available to help answer your questions about practice issues and regulatory matters. They provide confidential information services to real estate professionals and members of the public. Contact an advisor today.