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FINTRAC, the federal regulator for financial and brokerage companies in Canada, has imposed fines of USD 66,742.50 on Park Georgia Realty in Vancouver and USD 31,350 on Re/Max All-Stars Realty in Unionville for non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The federal regulator found Park Georgia Realty to have committed the following violations:

• Failure to develop compliance policies and procedures that sufficiently covered the requirements
• The organization failed to assess and document the money laundering risks associated with its geographic locations and products. It also did not evaluate risks related to delivery channels, clients, and business relationships.
• The training program failed to include the frequency and methods for maintaining ongoing training.m
• Failure to establish and document the prescribed review of its compliance policies and procedures, risk assessment and training program
• Failure to keep prescribed information in client information and receipt of funds records.

A compliance examination in 2018 identified the violations. Re/Max All-Stars Realty received a fine for failing to provide most requested compliance program documentation during a 2019 compliance examination. Both brokerage agencies have appealed this decision to the Federal Court of Canada.

FINTRAC is recognised for seeking to cooperate with companies efficiently and transparently. However, some may wonder if the news of sanctions for Canada’s two largest brokerage firms raises concerns for business. While this is understandable, it is better to view it as a reminder for financial institutions. They must maintain a close and consistent focus on complianc

Taking financial compliance and the scrutiny of regulators seriously is an essential factor for long-term success. This involves creating appropriate compliance programs and risk assessment procedures. It also includes employee training and ensuring proper documentation of anti-money laundering and terrorist financing processes. Expert advice can also assure that potential regulatory pitfalls and oversights are avoided.

By prioritizing financial compliance alongside key business operations, real estate brokers and financial institutions can achieve long-term success. This approach minimizes the risks associated with regulatory non-compliance.

At PayCompliance, we have 18 years’ experience of supporting the success of payment institutions across 6 countries. Our customized AML and ATF compliance services help you meet FINTRAC requirements. We cater specifically to real estate brokers, sales representatives, and developers.

For more information, go to: https://paycompliance.com