Working With FINTRAC: Information for CHBA Members
As of February 20, 2009, many new home builders and housing manufacturers will have new responsibilities under Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTF). The legislation is enforced by the Financial Transactions Analysis and Reporting Centre of Canada (FINTRAC), which also provides guidelines.
This CHBA site gives a ‘layman’s version’ of who has to comply with the Act, and what they have to do. Background on money laundering and terrorist financing is also found in the Risk Analysis section.
NB: Since FINTRAC’s policy is not to comment on information provided by associations, the contents of this website have not been reviewed by FINTRAC, nor approved by the Government of Canada.
Bottom Line:
- keep records on all sales,
- report specific types of transactions to FINTRAC, and
- set up a compliance system in your company.
A study of RCMP cases involving money laundering reported that more than
55% of the schemes involved real estate transactions. Where criminal
proceeds were invested in real estate, more than 70% involved purchase
of one or more single family residential properties.
See ‘Money Laundering in Canada: An Analysis of RCMP Cases’
Stephen Schneider, PhD
York University, 2004
