Humber/Ontario Real Estate Course 4 Exam Practice

To comply with FINTRAC requirements, a brokerage must:

1. Complete a receipt of funds record for deposits over $10,000

2. Maintain detailed records of all transactions

3. Submit monthly reports of all transactions to FINTRAC

4. Record all transactions regardless of the amount

5. Report suspicious transactions immediately

6. Hire a dedicated compliance officer

The correct answer is: Record all transactions regardless of the amount

The accurate choice emphasizes the fundamental requirement set forth by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) for brokerages to document all financial transactions, regardless of the amount. This comprehensive record-keeping is necessary to ensure transparency and identify any patterns or anomalies that may indicate illicit activity. Maintaining records of every transaction provides a clear audit trail that allows for effective monitoring and fulfills the brokerage's obligation to prevent money laundering and terrorist financing. By recording all transactions, brokerages can comply with both regulatory requirements and the due diligence necessary for financial integrity. The other options, while related to compliance and record-keeping, focus on specific aspects that might not encompass the full requirement as effectively. For instance, completing a receipt of funds record for deposits over a certain amount, submitting monthly reports, or reporting suspicious transactions pertain to particular scenarios, but the overarching duty is to ensure that all transactions are recorded systematically. A dedicated compliance officer can enhance regulatory adherence but is not a mandatory requirement for all brokerages under FINTRAC regulations.