Humber/Ontario Real Estate Course 4 Exam Practice

What can involve acts of hiding or converting illegally gained funds by acquiring and disposing of property?

1. Only Canadian activities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

2. Real estate transactions exempted from legislation

3. Federal Financial Tracking and Action Centre (FINTRAC) analysis

4. Activities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

5. Financial offences limited to banking institutions

6. Exclusive jurisdiction of provincial financial regulators

The correct answer is: Activities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

The correct choice is derived from the association of illegal activities regarding money laundering with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This legislation is designed specifically to combat money laundering and the financing of terrorism within Canada. It outlines the processes by which illegally obtained money is concealed or integrated into the financial system, particularly through methods such as acquiring and disposing of real property. Activities under this act provide a framework for identifying, reporting, and dealing with suspicious transactions that might involve such illegal funds. The act applies broadly to various sectors, including real estate, where it is essential to monitor transactions that could be used to obscure the origins of illicit funds. In contrast, other choices misrepresent the scope or context of the act. For example, options discussing exemptions or limitations to certain financial institutions do not encompass the act's overarching purpose—it applies universally to all activities involving proceeds of crime, not just to specific sectors or institutions.