Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following is accurate concerning a deposit suspects wrong-doing related to a $12,000 cheque in a real estate transaction?

1. Report the matter to FINTRAC as a suspicious transaction.

2. Notify FINTRAC as it qualifies as a large cash deposit.

3. Inform FINTRAC under procedures for terrorist property reporting.

4. Report FINTRAC under 'Money Laundering Confirmation Report'.

The correct answer is: Report the matter to FINTRAC as a suspicious transaction.

In the context of a real estate transaction where there is suspicion related to a $12,000 cheque, reporting the matter to FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada) as a suspicious transaction is accurate and aligns with the obligations of real estate professionals under Canada's anti-money laundering regulations. Real estate agents are required to be vigilant and report any suspicious transactions that may indicate money laundering or terrorist financing activities. A transaction is deemed suspicious when there are reasonable grounds to suspect that it is related to the proceeds of crime or is intended for money laundering purposes. In this case, the suspicion linked to the cheque indicates that there may be illegitimate motives behind the transaction, necessitating a report to FINTRAC. The other options do not accurately reflect the specific obligations related to the scenario. For instance, notifying FINTRAC solely based on the cheque being a large cash deposit does not address the key point of suspicion linked to potential wrongdoing. Similarly, informing FINTRAC under procedures for terrorist property reporting would be inaccurate unless there is a direct link to terrorism financing. Lastly, a 'Money Laundering Confirmation Report' is not a recognized reporting mechanism under FINTRAC guidelines. Thus, reporting the matter as a suspicious transaction is the most