Overview

Who has to comply?

• any individual or firm which sold five or more new residential units in 2008 or later
• substantial renovations (90% +) are also considered 'new' if sold by builder/renovator
• sales handled through an outside, provincially licensed real estate agent or broker do not count More
• requirements for manufactured housing companies also depend on who sells to the final customer More

What do they have to do?

1. For all sales - keep records:

Client identification

• record information about buyers (individuals, corporations, partnerships, associations, etc.), and get approved identification  More

Receipt of funds

• keep a detailed record of all funds they receive towards the sale  More

2. For special cases — make reports

Large cash transactions ($10,000 or more):

• record specific information about the transaction
• file a “Large Cash Transaction Report” with the government  More

Suspicious transactions:

• file a ‘Suspicious Transaction Report’ with the government More

Terrorist property (including funds) in your possession:

• file a ‘Terrorist Property Report’ with the government without delay More

3. For the company - compliance:

• do a risk analysis of how the company might be used for money laundering or terrorist financing
• set up a compliance system, including someone assigned to be responsible, written policies and procedures, training, and review

Enforcement, fines and penalties

The Act and regulations are enforced by the Financial Transactions Reporting and Analysis Centre of Canada (FINTRAC).  More 

Scenarios:

These examples show how the legislation applies to home builders and housing manufacturers in various business arrangements. More