COMPLIANCE POLICIES AND PROCEDURES
Aedis Realty Limited, Nanaimo
Financial Transactions and Reports Analysis Centre of Canada
COMPLIANCE POLICIES AND PROCEDURES
Aedis Realty Limited, Nanaimo
Financial Transactions and Reports Analysis Centre of Canada
The objective of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act ("PCMLTFA") is to help detect and deter money laundering and the financing of terrorist activities. It is also to facilitate investigations and prosecutions of money laundering and terrorist activity financing offences. In order for the real estate sector to comply with these requirements, obligations have been established under FINTRAC.
These obligations include the establishment by each office of a compliance regime, which:
a) establishes a compliance policy;
b) appoints a compliance officer;
c) facilitates training for all its employees;
d) identifies clients;
e) assesses risks; and
f) reports any suspicious transactions.
The compliance officer for our Branch Office is Moe Lessan. While the compliance officer retains the responsibility for the implementation of the compliance regime, the officer may delegate an individual in a local office or branch to ensure that compliance procedures are properly implemented at that location.
OBLIGATIONS of ALL LICENSEES AND STAFF
Every licensee and employee of the Office must complete the 5 Modules under Money Laundering available at the www.realtorlink.ca website and read and understand this entire Compliance Manual. After completing both requirements, every licensee or employee must complete the certificate confirming completion and hand it in to the Compliance Officer.
In order to comply with the objectives under the PCMLTFA and FINTRAC and reduce the risk of our Office being involved in any suspicious transaction defined under FINTRAC, our Office has instituted the following main policies and procedures, to be followed by every licensee and employee of the office:
- No cash deposit is to be accepted on any real estate transaction without the approval of the Managing Broker.
- All new clients are to be asked whether they have completed a transaction with the office in the past 5 years.
- No listing will be posted onto any [email protected] system unless the proper identification record has been completed fully and submitted to the office.
- No commission will be paid to any licensee unless all FINTRAC documentation, including client identification and receipt of funds record, if applicable, have been fully completed and submitted to the office.
- If a client is in a Business Relationship, meaning that they have completed at least 2 transactions with our office within the past 5 years, and the client is identified as low risk, then sections C and D of the identification record must be completed and submitted to the office.
- 6. If a client or Business relationship is identified as being high risk, then this must be immediately reported to the Compliance Officer to determine whether additional ongoing monitoring measures must be undertaken.
- 7. If anyone is aware of any suspicious transaction or attempted suspicious transaction, at any time during the course of a real estate transaction, it is to be reported immediately to the Compliance Officer.
RECORD KEEPING OBLIGATIONS
It is the responsibility of every licensee to complete all paperwork with respect to:
- Client information records;
- Copies of official corporate records and all accompanying paperwork;
- Receipt of funds records;
- Large cash transaction records (Our office does not accept any cash deposits without the approval of the Managing Broker); and
- Notifying the Compliance Officer of any high risk client, suspicious transaction or attempted suspicious transaction.
It is the responsibility of the Administration office to keep all of the above records on file. All records will be reviewed by the Administration staff, filed electronically and the original documents may be shdded.
These records will be kept on file for a minimum of five (5) years.
The real estate licensees including managing broker(s) will not have access to:
- Client information records
- Copies of official corporate records and all accompanying paperwork
All records collected by any employee or contractor acting on behalf of the Broker shall be retained by the Office. If the employee or contractor leaves the Office, the records they acquired while representing the Office, shall remain with the Office.
Every licensee must take specific measures to identify the following individuals or entities:
- Any individual or entity for whom a client information record or a receipt of funds record must be completed;
- Any individual for whom you suspect that a suspicious transaction report may have to be completed;
- Any individual who conducts a large cash transaction - Our office does not accept any cash deposits without the approval of the Managing Broker.
As a real estate licensee, you must complete a client information record for every purchase or sale of real estate. Although this may not be required until the transaction has closed, it is our office policy to require the record to be completed at the time the listing is signed for a seller or at the time the offer is made by any buyer.
The client identification record is not required when signing lease transactions except substantial refundable deposits.
COMPLETING THE INDIVIDUAL IDENTIFICATION INFORMATION RECORD
- All Applicable questions must be completed in full`
- Valid identification must be listed in the paragraph at the bottom of the form.
- Identification used must be valid and not expired at the time you identify the client.
- A separate form must be kept for each individual.
- If the form is typed or completed by the client, then you are required to sign the form stating that you have personally viewed the identification. Write in at the bottom of the form "verified by" and then sign with your name and title.
- You are not required to reference your client's employer, but you are required to state the client's occupation (ie: doctor, lawyer, welder). You can list a client as retired as an occupation if they are retired. Be careful not to use the words "sales" or "self-employed" as an occupation. It is best to also include the industry involved, such as "computers" or "Information Technology Consulting". If the client is an individual, the client information record also has to include the individual's date of birth. If there is more than one individual purchasing or selling, you have to keep a separate client information record about each individual. This form must be complete in its entirety.
Examples of acceptable identification documents are birth certificate, driver's licence, passport, record of landing, permanent resident card, old age security card, a certificate of Indian status, or Social Insurance Number card, Photo Health card.
You must personally see the original identification document and record all details on these forms. Faxed, picture or scanned copies are not acceptable. The record should be personally completed by the salesperson or broker. If the client has filled in any of the required information, or if the record is typed, then you must sign the form stating that you have personally viewed the identification. Write in at the bottom of the form "verified by" and then sign with your name and title.
For sellers, our office requires that the Individual FINTRAC Identification form(s) be submitted to the Administration office for processing with every listing. If the seller is a corporation, you will be allowed 5 business days to submit the Corporate Identification form and all accompanying paperwork. Failure to submit these required forms will result in processing delays for your listings and/or withdrawal of the listing and/or withholding of that specific broker or salesperson commission on closing. Failure to submit these required forms may also result in the information being filed with FINTRAC as a Suspicious Transaction for their investigation.
For buyers, the Individual FINTRAC Identification forms are required to be submitted with your paperwork to the Administration office. If the buyer is a corporation, you will be allowed 5 business days to submit the Corporate Identification form and all accompanying paperwork. Upon closing, if a broker or sales representative agent has not provided the office with the required paperwork, then that specific broker or sales representative's commission will be held by the office until such paperwork is received. Failure to submit these required forms may also result in the information being filed with FINTRAC as a Suspicious Transaction for their investigation.
Completion of Section C - Client Risk
Section C must be completed for every client who is identified. It is one of our objectives to identify as soon as possible whether any client or transaction may be high risk, as outlined in the FINTRAC guidelines on money laundering and terrorist financing.
Accordingly, any time that you are not able to use any of the boxes in Section C under the heading "Low Risk", you must immediately contact the Compliance Officer.
In addition, even if the client is identified by one of the headings under Low Risk, the following activities are considered high risk activities:
Client's business is cash intensive, Client refuses to sign any documents, inflated purchase price, offer provides for cash back on closing, multiple dealings with the same property in short period of time, under table payments, no inspection required of property, offshore bank accounts, Client property is located in a high crime area, client uses complex structures, such as trusts, foundations, partnerships that do not seem usual for their business or seem very complex and unnecessary, client represents entity identified as a known terrorist group or client originates from countries identified as havens for terrorist activity such as Afghanistan, Pakistan, Somalia, Bosnia and Herzegovinia, Libya, Chechnya and Nigeria.
Any time the client is identified as high risk, or if you are unsure as to whether any client is high risk, immediately contact the Compliance Officer.
CORPORATE IDENTIFICATION INFORMATION RECORD
- In addition to the Corporate Identification Information Record, an Individual Identification Information Record is required for every client who signs a listing and/or an offer.
- All applicable questions must be completed in full.
Corporations and Other Entities
If the client is a corporation, you are obligated to confirm the existence of the corporation, to determine the corporation's name and address, and to determine the names of its directors. This information can be verified using the corporation's certificate of corporate status, a record that has to be filed annually under provincial securities legislation, a certificate of incumbency, a resolution of the corporation directors or any other record that confirms the corporation's existence. Similarly, if the client is another type of legal entity, such as a partnership, then the existence of the entity must be confirmed through appropriate records.
FINTRAC also requires the person conducting the transaction to be identified. This should be done using the Individual Identification Information Record form.
If the client information record is about a corporation, you also need to keep a copy of the part of the official corporate records showing the provisions relating to the power to bind the corporation regarding the transaction. This could be a certificate of incumbency, the articles of incorporation or the bylaws of the corporation that set out the officers duly authorized to sign on behalf of the corporation, such as the president, treasurer, vice-president, comptroller, etc. If there were changes subsequent to the articles or bylaws that relate to the power to bind the corporation regarding the transaction, and these changes were applicable at the time that the record had to be kept, then the board resolution stating the change would be included in this type of record.
In addition, any shareholder who owns 25% of the shares in the corporation must be identified.
You can also use an additional Dual Course Method to identify clients
Can review 2 source documents to show
- Name and address
- Name and Birth Date
Using two original, valid and current documents or information from independent and reliable sources (such as utility bills, bank statements, CRA notice of assessment, Birth certificate, void cheque and credit card with a financial institution).
Keep a record of what type of document, number, date you recorded the information This is very helpful for elderly clients who do not have picture identification
If the client is unable to produce the documentation required but has a lawyer acting for them, have the client complete a Consent form and forward it to the client's lawyer or accountant in order to obtain the required information.
Exceptions to Client Identification Obligations
There are some exceptions to the client identification obligations. You do not have to verify the identity of a client that you recognize and have previously identified in a past transaction. Still, you must complete sections C & D of the Identification Form.
You also do not have to keep any of the records if you conduct a transaction for a
public body or a very large corporation, such as a government agency or department, A City, town, village or municipal authority, or a hospital authority.
Also in this context, a very large corporation is one that has minimum net assets of $75 million on its last audited balance sheet. The corporation's shares have to be traded on a Canadian stock exchange or on a stock exchange outside Canada that is designated by the Minister of Finance
Non Face-to-Face Identification
If you are not dealing with a client face-to-face and therefore cannot personally verify the client's identity, an agent or mandatary can be used to fulfill the Client Information Record obligation. If using an agent or mandatary, the PCMLTF Regime requires there to be an agreement in writing between the broker and the agent/mandatary outlining what is required of the agent/mandatary. The agent/mandatary must then obtain the client information pursuant to their agreement.
Alternatively, the PCMLTF Regime specifies that a combination of two of five designated methods may be used to identify a client who is not physically present but is a resident of Canada:
- Refer to an independent and reliable identification product. It must be based on personal information as well as Canadian credit history about the individual of at least six months duration. This type of product can use a series of specific questions, based on an individual's credit file, to enable verification of client identity.
- Confirming, after obtaining authorization from the person, their name, address and date of birth by referring to a credit file from Equifax or TransUnion in respect of that person in Canada that has been in existence for at least six months.
- btain attestation of ID from a Commissioner of Oaths or guarantor; a guarantor may be any of the following Canadian professional - dentist, medical doctor, chiropractor, judge, magistrate, lawyer, notary public, optometrist, accredited public accountant, chartered accountant, professional engineer or veterinarian.
- Confirm that cheque drawn on a deposit account from a Canadian financial entity has cleared;
- Confirm existence of a deposit account from a Canadian financial entity. You could do this by viewing an original bank statement.
NOTE: Neither 1&2, nor 4&5 can be combined as the 2 required methods
For any Power of Attorney, the Individual FINTRAC Identification forms for the person who is signing the listing/offer are required to be submitted with your paperwork to the Administration office.
In addition, a copy of the power of attorney papers is required.
In addition, part B. Verification of Third Parties is required (for the person who has given the power of attorney).
NOTE: Power of Attorney is only valid for a living person. If person is deceased, the Power of Attorney is no longer valid and we follow the estate sale procedures below.
For an Estate Sale, the Individual FINTRAC Identification forms for the person who is signing the listing/offer are required to be submitted with your paperwork to the Administration office.
In addition, a copy of the probate papers or a copy of the will is required.
Third Party Records
When verifying the identity of clients, you are required to take reasonable measures to determine if a third party is involved in the transaction. When determining whether or third party is involved, it is not about who "owns" the money, but rather about who gives instructions to deal with the money. To determine who the third party is, the point to remember is whether the individual in front of you is acting on someone else's instructions. If so, that someone is the third party. FINTRAC defines a third party as an individual or entity other than the individual who conducts the transaction. For example, if an individual "A" is conducting a transaction and they have Power of Attorney for another individual "B", then "A" would be considered the client for identification purposes and "B" would be the third party. Information about "B" would then be recorded in the Verification of Third Parties portion of the Individual Identification Information Record.
If you determine that there is in fact a third party who gave instructions to the individual conducting the transaction, you have to keep a record of the following information:
- the third party's name, address and principal business or occupation;
- if the third party is an individual, the third party's date of birth;
- the incorporation number and place of incorporation if the third party is a corporation;
- in the case of a client information record, the nature of the relationship between the third party and the client,
- in the case of a large cash transaction, the nature of the relationship between the third party and the individual who gives you the cash (Our policy is not to accept any cash deposit without the approval of the Managing Broker)
If you are not able to determine that there is in fact a third party, but you have reasonable grounds to suspect that there are instructions of a third party involved, you must indicate details of why you suspect the individual is acting on a third party's instructions and immediately inform the Compliance Officer.
If there are unrepresented buyers and sellers involved in a transaction (i.e FSBO, "mere posting" or buyer not under contract), the broker or salesperson representing the other party is responsible for collecting the required identification information, and keeping it on file with our office. If the unrepresented individual refuses to provide the required personal information, you must document this and keep this report on file. If you have reasonable grounds for suspicion about the unrepresented individual and their reasons for refusal, you must immediately notify the Compliance Officer.
If a client conducts a second purchase or sale transaction within a 5 year period, then a "Business Relationship" has been formed under the PCMTLF. Once it is formed, section D of the Client Identification Form must be completed.
You should determine that a business relationship has been established as soon as reasonably practicable following the second transaction requiring that the client's identity be ascertained. As a best practice, this should be done within 30 calendar days.
If a Business Relationship is established, then if the client is identified as high risk, additional periodic monitoring must be done of the client's business.
When completing the ID form, always make sure that the client is providing you their current contact information. If the client has been identified as high risk in section C, immediately contact the Compliance Officer.
It is our policy that if a client in a Business Relationship is classified as low risk, there will be no ongoing monitoring but a complete Identification Record will be required to be completed on every subsequent transaction, including a risk assessment. If a client is identified as high risk, then here are some of the measures that could mitigate the risk in cases of high-risk business relationships:
- Obtaining additional information on the client (e.g. occupation, volume of assets, information available through public databases, Internet, etc.).
- Obtaining information on the source of funds or source of wealth of the client.
- Obtaining information on the reasons for intended or conducted transactions.
- Obtaining the approval of senior management to enter into or maintain the business relationship.
- Identifying patterns of transactions that need further examination.
- Requiring the first payment to be carried out through an account in the client's name with a bank subject to similar client due diligence standards.
- Increased monitoring of transactions of higher-risk products, services and channels.
- Establishing more stringent thresholds for ascertaining identification.
- Gathering additional documents, data or information; or taking additional steps to verify the documents obtained.
- Increasing awareness of high-risk activities and transactions.
It is our office policy that whenever a client is identified as high risk, or you are unsure whether the client should be identified as high risk, then the Compliance Officer must be notified immediately in order that an appropriate monitoring plan is established for that client.
Receipt of Funds Record
A receipt of funds record is required when you receive funds for a purchase or sale transaction. Generally this is completed by the buyer’s agent, however, if there is no buyer’s agent involved, the listing salesperson or broker is required to complete the Receipt of Funds Record.
When you are working for the buyer, you are the person who must complete the Receipt of Funds Record. When you receive funds from a client represented by another real estate broker or representative, it is that other broker or sales representative who has to keep the receipt of funds record. If the client in this situation is a corporation, that other broker or sales representative also has to keep the information about the power to bind the corporation regarding the transaction.
If the deposit is payable directly to the seller, lawyer or builder, no receipt of funds record needs to be completed.
There is no requirement to provide another broker office with copies of the completed Receipt of Funds Record.
Contents of a Receipt of Funds Record
For any receipt of funds, the information you have to keep in a receipt of funds record includes the following:
- the amount and currency of the funds received;
- the name, date of birth and address of the individual from whom you received the funds and that individual's principal business or occupation;
- the date of the transaction;
- the purpose, details and type of transaction (for example, the funds were for a deposit on the purchase of a house, etc.), including whether any other individuals or entities were involved in the transaction;
- If a husband and wife are the clients, both need to be identified separately;
- if the funds received were cash, how the cash was received (Our policy is no cash deposits without the approval of the Managing Broker);
If the person providing the funds is the same as the client, then you do not need to complete another Client Identification Record. However, if the funds are coming from a different person or entity, then a Client Identification Record must be completed for the person providing the funds as well.
When 2 offices are involved in a transaction and the funds are deposited in the listing office's trust account, the buyer salesperson or broker is required to complete the Receipt of Funds Record but is not required to include the listing office's trust account number or the entity that holds the trust account. It is sufficient to write "Listing Broker's trust account"
With new form, even if a bank draft is received, original chequing account from which the draft was obtained must be recorded.
Under FINTRAC, reports are required to be filed in three different situations;
- If you are involved in a suspicious transaction or attempted suspicious transaction;
- If you are involved in a large cash transaction; and
- If you are involved with property that is owned or controlled by a terrorist or terrorist group.
If you are involved in any of the above situations or you are not sure whether you may be involved, please contact the Compliance Officer immediately to discuss how to proceed as all reports are to be submitted by the Compliance Officer on behalf of the Office. If the Compliance Officer determines that a report needs to be made, then the salesperson or broker shall provide the relevant details regarding the transaction to the Compliance Officer who shall submit the report on behalf of the Office, and if applicable, also immediately notify the Managing Broker.
Penalties for Non-Compliance
Failure to comply with legislative requirements can lead to criminal charges against you. The following are some of the penalties:
- Failure to report a suspicious transaction or failure to make a terrorist property report - conviction of this could lead to up to five years imprisonment, to a fine of $2,000,000 or both.
- Failure to retain records - conviction of this could lead to up to five years imprisonment, to a fine of $500,000, or both.
- Failure to implement a compliance regime - conviction of this could lead to up to five years imprisonment, to a fine of $500,000, or both.
Effective December 30, 2008, failure to comply with legislative requirements can lead to the following administrative monetary penalties against you:
- Failure to implement any of the five elements of the compliance regime could lead to an administrative monetary penalty of up to $100,000 for each one.
- Failure to identify clients, keep records, monitor financial transactions and take mitigating measures in situations where risk of money laundering or terrorist financing is high could lead to an administrative monetary penalty of up to $100,000.
Suspicious Transactions - General Criteria
The following are examples of what would be considered a suspicious transaction or attempted suspicious transaction:
The client is:
- nervous, not in keeping with the transaction
- defensive when questioned and leaves the office
- secretive and reluctant to meet in person
- presents confusing details about themselves and/or the transaction
- over justifies or explains the transaction
- makes statements about involvement in criminal activities
- Financial / Transactional Details
- The client:
- does not want correspondence sent to their home address
- appears to have accounts with several financial institutions (and withdraws request of service when questioned)
- seems to be watched or accompanied during a transaction
- seems to be willfully blind to being involved in possible money laundering activities
- leaves the office and does not complete the transaction when asked for ID
- attempts to convince you not to complete the necessary forms and does not complete the transaction when unsuccessful
- makes inquiries that would indicate a desire to avoid reporting
- has unusual or above the average person's knowledge of the law in relation to suspicious transaction reporting
- provides doubtful or vague identify information
- refuses to produce personal identification
- wants to establish identity through a means other than personal identification
- has documentation that lacks important details such as phone number or street address
- submits only copies of personal identification documents
- has the home phone disconnected and provides various cell phone numbers
- delays presenting personal or corporate documents
- produces seemingly false documentation
- uses aliases and a variety of similar, but different addresses
- uses a post office box or general delivery address instead of home address
- states they have left their ID at home or indicates that they have no ID
- wants to conduct transactions that involve countries outside of Canada that may be known for suspicious activity such as drugs, money laundering or terrorist activity
- payments from foreign bank accounts (from Canadian clients)
- is inconsistent with the clients financial standing or pattern of activities
- is unnecessarily complex for its stated purpose (i.e. involves too many steps or tasks making for unnecessary service charges)
- switching funds between several accounts in different financial institutions
- transaction involves a non-profit or charitable organization for which there appears to be no link to the client
Transactions with offshore businesses:
- Loans secured by and obligation from and offshore bank or companies
- "shell" banks that have names very similar to the name of legitimate institutions
Suspicious Transaction Examples
The following are some scenarios that should raise a red flag:
- Client undertakes two or more cash transactions of less than $10,000 CDN each that together total $10,000 CDN or more within 24 consecutive hours of each other, and are made on or on behalf of the same person or entity. (Our policy is to accept no cash deposits without the approval of the Managing Broker)
- Client purchases property in the name of a nominee such as an associate or a relative other than a spouse.
- Client does not want to put his or her name on any document that would connect him or her with the property or uses different names on Offers to Purchase, closing documents, and deposit receipts.
- Client inadequately explains the last minute substitution of the purchasing party's name.
- Client tries to negotiate a purchase for market value or above asking price, but records a low value on documents, paying the difference "under the table".
- Client tries to sell property below market value with an additional "under the table" payment.
- Client pays initial deposit with a cheque from a third party, other than a spouse or parent.
- Clients pays substantial down payment in cash and balance is financed by an unusual source or offshore bank.
- Client purchases property without inspecting it.
- Client purchases multiple properties in a short period of time, and seems to have few concerns about the location, condition, and anticipated repair costs of each property.
- Client pays rent for the amount of the lease in advance using a large amount of cash.
- Client is known to have paid large remodelling or home improvement invoices with cash on a property for which property management services are provided.
- Client is third party buying a home for someone else in their name.
- Client is from a country suspected of being involved with terrorist activity or suspicious transaction activity, including but not limited to: Afghanistan, Iraq, Iran, Lebanon, Syria, Somalia, Nigeria, Bosnia and Herzegovinia, Libya and Chechnya
You must report a suspicious transaction if you have "reasonable grounds" to suspect a transaction is related to money laundering or terrorist financing offence. Suspicious Transaction reports must be filed with FINTRAC within 30 days of the date you became suspicious about the activity.
Our office policy with respect to our suspicious transaction obligations is as follows:
- • Any licensee or employee who suspects that a suspicious transaction or attempted suspicious transaction has taken place that should be reported to FINTRAC must immediately supply the required information to our Compliance Officer.
- • All required Suspicious Transaction reports will be forwarded to FINTRAC by the Compliance Officer within 30 days of when the licensee or employee first detects a fact that constitutes reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence or terrorist activity financing offence.
- • If FINTRAC notifies our office that a Suspicious Transaction Report contains incomplete information, our Compliance Officer will notify the licensee or employee concerned and obtain the missing information.
The real estate broker or sales representative must report as soon as possible to the compliance officer when you know that there is property in your possession or control that is owned or controlled by or on behalf of a terrorist or a terrorist group.
In order to determine whether an individual or entity is part of a known terrorist activity, please refer to the attached link to the government's list of individuals and entities available at:
Information Required in a Terrorist Property Report
The terrorist property report has to contain information that describes the property. The report also has to provide information about the terrorist, the terrorist group or the listed person and anyone who owns or controls the property on their behalf. In addition, if there were any transactions or proposed transactions related to the property, the report also has to contain information about them. In the case of a transaction or a proposed transaction, the information to be contained in the terrorist property report is very similar to a suspicious transaction report.
It is an offence to deal with any property if you know that it is owned or controlled by or on behalf of a terrorist or a terrorist group or if you believe that it is owned or controlled by or on behalf of a listed person. It is also an offence to be involved in any transactions in respect of such property.
Some examples of suspicious activity that may be associated with terrorist activity are as follows, and may also be considered as suspicious transactions as well;
- Use of "shell" companies to conceal beneficial ownership
- The use of family or friends who are trusted within the community who will not attract attention to conduct transactions on behalf of terrorist groups
- Use of "smurfs" to make transactions in smaller amounts that do not attract attention
In addition to making a terrorist property report to FINTRAC about this type of property, there are also requirements to disclose to the RCMP and CSIS under the following:
- the Criminal Code, if you know that property in your possession or control is owned or controlled by or on behalf of a terrorist or a terrorist group. It is also an offence under the Criminal Code to deal with such property; and
- the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism if you believe that property in your possession or control is owned or controlled by or on behalf of a listed person. It is also an offence under the United Nations Act to deal with such property.
Both requirements apply to anyone in Canada and any Canadian outside Canada. This includes information about any transaction or proposed transaction relating to that property.
In either situation, information is to be provided to them, without delay, as follows:
RCMP, Anti-Terrorist Financing Team, unclassified fax: (613) 949-3113
CSIS Financing Unit, unclassified fax: (613) 231-0266
Our office policy with respect to our Terrorist Property reporting obligations is as follows:
- All licensees and employees shall consult with the link:
- http://www.osfi-bsif.ec.ca/Ene/fi-if/amlc-clrpc/atf-fat/Paees/default.aspx on every transaction to determine that property is not owned or controlled by a terrorist group.
- If you are suspicious that you are dealing with terrorist property or a terrorist group, you must immediately inform our Compliance Officer.
- If it is determined that property is owned or controlled by or on behalf of a terrorist or a terrorist group or believed that property is owned or controlled by or on behalf of a listed person:
o A Completed Terrorist Property Reports shall be sent to FINTRAC by our Compliance Officer.
o The Compliance Officer will contact the RCMP and CSIS as necessary.
- If it is suspected that property is owned or controlled by or on behalf of a terrorist, terrorist group or listed person:
o The Compliance Officer shall file a Suspicious Transaction Report with FINTRAC.
• Retain a copy of the Suspicious Transaction Report acknowledgement message from FINTRAC.
Large Cash Transactions
Large Cash Transaction Record
There is a requirement under FINTRAC that if we receive more than $10,000 in cash, a large transaction record must be created and maintained, using the large cash transaction Report from the FINTRAC website.
Since our policy is not to accept any cash deposits without the approval of the Managing Broker.
Risk Assessment and Risk Mitigation
In order to make sure that we are always complying with our obligations under FINTRAC and PCMLTF, we have instituted the policies and procedures contained in this compliance policy document.
A guideline for you to follow is to always know your clients. Understand their business and occupation so that you will more easily be able to determine whether they maybe in a high or low risk situation. Be extra vigilant when the client completes frequent transactions.
Our Compliance Program will institute and document a review of the policies and procedures, the risk assessment, and the training program for the purpose of testing their effectiveness. In this regard, we will conduct review of our files to make sure that all forms have been properly completed and filed. We will also review any high risk activity to ensure that proper procedures are always in place to effectively address any issues.
The review will be documented and should any weaknesses be discovered they will be addressed. Also included in this document will be any corrective measures and follow-up actions.