Humber/Ontario Real Estate Course 4 Exam Practice

What is Salesperson Cowan's responsibility in terms of FINTRAC compliance?

1. Creating a compliance regime specific to FINTRAC

2. Reporting any suspicious transactions

3. Reviewing compliance policies annually

4. Developing joint training programs with the brokerage

5. Meeting sellers with proper identification

6. Ensuring FINTRAC forms are non-accessible

The correct answer is: Reporting any suspicious transactions

Salesperson Cowan's primary responsibility regarding FINTRAC compliance is to report any suspicious transactions. This duty is crucial because, under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, individuals involved in real estate transactions must identify and report any suspicious activities that could relate to money laundering or terrorist financing. Recognizing and reporting these transactions helps ensure that the real estate sector remains compliant with anti-money laundering regulations and contributes to the overall integrity of the financial system. While creating a compliance regime, reviewing compliance policies, developing training programs, ensuring proper identification, and managing the accessibility of FINTRAC forms are important activities within a brokerage, the responsibility to report suspicious transactions is a direct obligation of individual salespersons. This focus on active reporting highlights the important role that each agent plays in maintaining regulatory compliance at the ground level.