FINTRAC GUIDE

We have created this reference for you to assist you in ensuring you are easily able to be compliant in your FINTRAC obligations as a sales representative.

Our formal published FINTRAC Policy can be found HERE

Our expectation is that you will abide by the policy which outlines both your and our obligation under FINTRAC

The Policy Highlights are as follows:

The company FINTRAC officer is Karen Grunlund – FINTRAC@HouseSigma.com

All transactions must have a completed (via Fintracker)

• Individual Identification each of the purchaser and/or third party or deposit provider

• Corporate Identification (if applicable)

• Receipt of Funds (If we are representing the buyer or when triggered by a large cash transaction)

The Individual Identification must 

• use a valid means of identification

• include a full description of clients profession

• if an unrepresented party who was declined to be identified record the reasonable measure you took

• include a determination as to whether the client is acting on behalf of a 3rd party (and an earnest effort to identify that 3rd party)

• include an earnest effort to identify the risk level of the client 

• include the reporting and recording of Business Relationship (ie is this a repeat client)

The Corporate Identification must

• be accompanies by the Articles of Incorporation.  

• must also include Individual Identification of the person signing for the corporation 

• must include Individual Identification of any beneficiary owners (those listed on the Incorporation Documents with more than 25% ownership)

Additional Important Identification

• When completing their Identification due diligence the representative must be be watchful for individuals who could be identified as Politically Exposed or Heads of International Organizations as outlined in the section below

The Receipt of Funds must

• be completed for each purchase deposit

• record the information on the type of funds and how/why the funds were provided for each instance of deposit funds

• flag any instance of foreign currency

• flag any CASH deposits

• include the transactional reference number associated with the deposit (such as wire transfer)

• include the source account number the deposit was drawn on along with all other “affected” affected accounts.

• if the funds or a portion of the funds were provided by anyone other than the purchaser you must complete an Individual Identification for the deposit provider

On Leases

You are not required to identify your lease clients UNLESS they are providing a deposit in excess of 10,000 or prepaying a majority portion of the rent.

On Failed Transactions

On transactions where a Mutual Release has been required by our buyer and the deposit is being returned you must complete the identification and receipt of funds report along with all other FINRAC duties and obligations.

Business Relationships

Representatives will co-operate with the Brokerage by identifying clients they have completed 2 or more transactions with.

Suspicious Transactions

Representatives will check frequently against the list of example suspicious transaction situation below and flag and transactional situation that appear on the list or that the representative has reason to believe may be suspicious.

Terrorist Individuals, Entities, Organizations and Property

Representatives will check frequently against the website resources listed below to ensure they are not dealing with an identified individual, entity or organization and will immediately flag and notify the compliance officer (BOR) if this is the case.

Agents are required as of July 1st, 2024 to use the Fintracker Application for all Fintrac requirements.  This application is provided to you by HouseSigma and/or your local board.

Without adherence to the policy we will not be paying out commissions on the transactions.

Our expectations is that you will work collaboratively and respectfully with our deals department

Non-Compliance or Non-Co Operation will result in any of the following

• Lead Pause

• Written Warning

• Termination of Contract

• Report to Fintrac Authority

• Report to RECO

Useful Links for Reference

Government of Canada:  Methods to verify the identity of persons and entities

https://www.fintrac-canafe.gc.ca/guidance-directives/client-clientele/Guide11/11-eng

Using OREA FORM 630

Valid Means of Identification:

Government ID Method

Using a single piece of government-issued photo identification and comparing it to the individual, who must, in most cases, be present;

You may verify the identity of a person by referring to a government-issued photo identification document.

To do so, the document must:

• be authentic, valid and current

• be issued by a federal, provincial or territorial government (or by a foreign government if it is equivalent to a Canadian document);

• indicate the person's name;

• include a photo of the person;

• include a unique identifying number; and

• match the name and appearance of the person being identified.

Photo identification documents issued by municipal governments, Canadian or foreign, are not acceptable. 

Acceptable identification includes, but is not limited to: 

• Driver’s License 

• Passport 

• Record of Landing Permanent Resident Card 

• Ontario Photo ID Card

• Certificate of Indian Status card 

Provincial Health Card is not acceptable if from Ontario, Manitoba, Nova Scotia, or PEI)

SIN cards are not acceptable

Note: if you use this method to verify ID, your records must include the person’s name, the date you referred to the credit file, the source of the information and the number of the person’s credit file.

IMPORTANT:

Looking at someone's identification via a video call is not the same as identifying in person.  This would not be acceptable. 

There are FINTRAC apps that have the technology that at a very low cost will provide you with the technology necessary to facilitate remote scanning of id such as REALLY TRUSTED or using one of the following methods.

You are expected to determine whether a government-issued photo identification document is authentic, valid and current by viewing it in person, and by looking at the characteristics of the original physical document and its security features (or markers, as applicable) in the presence of the person being identified. This will allow you to be satisfied that the identification document is authentic, as issued by the competent authority (federal, provincial, or territorial government), valid (unaltered, not counterfeit) and current (not expired). This means having your client scan you a picture is not acceptable, you need to examine it.

No Government ID Available or not Physically Present?

If there is no valid acceptable government id available or if your client is not physically present you have alternative methods...

Brokers or agents are also permitted to use the Credit File Method or Dual Process Method to identify clients in non-face-to-face situations. 

Credit file method

You may verify the identity of a person by referring to information that is in their credit file. 

To do so, the credit file must:

• contain information that is valid and current

• be from a Canadian credit bureau (credit files from foreign credit bureaus are not acceptable);

• have been in existence for at least three years;

• contain information that is derived from more than one source (i.e. more than one tradeline); and

• match the name, address and date of birth of the person being identified.

Note: if you use this method to verify ID, your records must include the person’s name, the date you referred to the credit file, the source of the information and the number of the person’s credit file.

Dual-process method

You may verify the identity of a person by using the dual-process method, which consists of doing any two of the following:

• referring to information from a reliable source that includes the person's name and address and confirming that the name and address are those of the person;  Example: Canada revenue notice of assessment; Federal, provincial, territorial and municipal benefits statements; CPP statements; record of employment; T4 statement; utility bill.

• referring to information from a reliable source that includes the person's name and date of birth, and confirming that the name and date of birth are those of the person;  Example: birth certificate; marriage certificate; divorce documentation; permanent resident card; temporary driver’s license; citizenship certificate.

• referring to information that includes the person's name and confirms that they have a deposit account, a prepaid payment product account , or a credit card or other loan account with a financial entity, and confirming that information. Example: Credit card statement, bank statement, loan account statement, cheque processed by a financial institution

The information you refer to must be valid and current and come from two different reliable sources. This information could be found in statements, letters, certificates, forms or other information sources that can be provided through an original version or fax, photocopy,  scan, or an electronic image.   If you use the “Dual Process Method” to verify ID, your records must contain the person’s name, the date on which you did so, the source of the information, the type of information referred to and the account number included in it, or, if there is no account number included in it, a number associated with the information. 

Note: if you use the “Dual Process Method” to verify ID, your records must contain the person’s name, the date on which you did so, the source of the information, the type of information referred to and the account number included in it, or, if there is no account number included in it, a number associated with the information. 

Using a Mandatory

If it is a matter of not being able to identify in person you have the option of using what is called a Mandatary.  That would be someone who has agreed to identify that person on your behalf.  There is a form to use when someone agrees to be your Mandatary (ie a Realtor in another province you have made an agreement with)

To use an agent or mandatary to verify the identity of a person you must:

• have a written agreement or arrangement in place with the agent or mandatary before you use them (there is an OREA form 632 available)

• obtain, as soon as feasible, all of the information that  the agent or mandatary referred to in order to verify the person's identity, and the information that the agent or mandatory confirmed as being that of the person; and

• be satisfied that:

  • the information that the agent or mandatary confirmed as being that of the person is valid and current, and

  • the person's identity was verified using the government-issued photo identification method, the credit file method or the dual-process method, or, if the person's identity was verified prior to June 1, 2021, using the methods in accordance with the PCMLTFR in place at the time

IMPORTANT:  Occupation

FINTAC audits have shown our industry that we need to be very specific about our clients occupation. 

When identifying the client you must be as descriptive as possible regarding the business or occupation. Determine titles, companies and business sectors where possible.  Record information that clearly describes it, rather than use a general term such as "consultant" or "Businessman" In the case of a professional, the occupation should reflect the nature of the work, such as “petroleum engineer” or “family physician”.  If the client is retired expand on what profession the client is retired from.

Proper Examples:

Consultant: Information Technology

Director of Product Development, CIBC

Retired Teacher, Toronto Catholic School Board

Updates as of October 1st, 2025

Third Parties

When verifying a client’s identity, agents must determine whether a third party is involved in the transaction. FINTRAC defines a third party as an individual or entity, other than the person conducting the transaction, who provides instructions regarding the transaction. Any third parties involved should be recorded on the Individual/Corporation Identification forms (Section B2).

A common example is a child holding power of attorney for an ailing parent.

In this case, the child is identified using the Individual Identification Form, and under the "Third Party" section, the agent must identify the ailing parent.

Remember: If an agent cannot determine whether a third party is involved but has reasonable grounds to suspect one exists, a record must be kept. This record should indicate whether the client acknowledged a third party and explain why the agent suspects a third party is involved (Section B1 Identification Forms).

Unrepresented Parties

Agents should also remember that their obligation to verify identities may, in some cases, extend beyond their own clients. When dealing with an unrepresented party (including sellers who only post listings), agents must verify the identity of that party. Previously, agents were only required to document attempts to obtain identification from unrepresented parties.

It is recommended to refer to CREA’s brochure “It’s the Law” and our own Client FINTRAC Information document, both available on our ATK. 

Using OREA FORM 631 (potentially OREA FORM 63)

Identifying a Corporation

In the instance that the client is a corporation, sales representatives are required to confirm the existence of the corporation and determine the legal name and address of the corporation. They must also be able to obtain the name(s) of the directors.   

This information can be verified using the corporation's certificate of incorporation, a record that has to be filed annually under provincial securities legislation, or to the most recent version of any other record that confirms its existence as a corporation and contains its name and address and the names of its directors. 

Beneficial owners who hold 25% or more must also be recorded with their names and addresses.

Additional copies can be ordered on-line https://ised-isde.canada.ca/site/corporations-canada/en/order-copies-corporate-documents

If your client has directed you to make the request of their Account Department you may choose to use OREA 633.

When you are verifying the identity of a Corporation or Entity, as you know, you are required to determine the beneficial ownership. Persons holding 25% or more must be documented. If you notice a discrepancy between the documents you have to verify the corporation and what was given to you as the beneficial ownership, you must contact our Compliance Officer for further instructions, this may be a Beneficial Ownership Discrepancy Report.

REMEMBER:

If the deposit is coming from a different entity or individual than that which was identified for the transaction they must be identified at Third Parties.

When our brokerage conducts an activity where the law requires the client to be identified, we are enter into a “business relationship” with that client under the PCMLTFA. 

In many cases, as a brokerage we will find we are conducting many activities with their clients. For example, in a real estate transaction where both the buyer and seller are represented:

• Where the brokerage represents a buyer and a deposit is received from the client, there are actually multiple “activities” that count towards the business relationship. For instance, the obligation to ID the buyer is one “activity”. Another “activity” occurs when a receipt of funds record is kept (as the agent is required to ID the person providing the funds – in this case, the client). Only one “activity” is necessary to form a “business relationship”.  

• Where the brokerage represents the seller there will likely only be at least one “activity” counting towards the business relationship – when the seller is ID’ed.

To assist us in monitoring the Business Relationships our expectation is that you will pay careful attention to sections D1&D2 on the client identification forms (both Individual and Corporate)

Here we want you to indicate if you you have worked with client previously and how many times.

We are asking you to identify  your clients Each and Every Time we deal with them so that we can meet our obligation to have updated information.

Please note your obligation under D.2.2., this is why we ask that you use your HouseSigma email and FUB account for client communications!

D .2 .2 Keep all relevant correspondence with the client on file in order to maintain a record of the information you have used to monitor the business relationship with the client . Optional - if you have taken measures beyond simply keeping correspondence on file, specify them here: 

USING OREA FORM 634

Agents are obligated to take reasonable measures to determine whether they are working with 

• a politically exposed foreign person, 

• a politically exposed domestic person, 

• a head of an international organization, or

• a family member or close associate of someone who falls into the above

The reasonable measures agents should perform in determining whether an individual is a PEP/HIO include:

• Asking the individual;

• Consulting a commercial PEP/HIO database that the brokerage has subscribed to; or

• Conducting an Internet search on the individual.

The simplest approach is asking the individual. 

If you familiarize yourself with the following definitions, when you are completing your Occupation Section of the Client Identification form it will be evident when you should ask more questions.

For your reference...

• “Politically exposed foreign person” (foreign PEP): an individual holding one of the following offices in or on behalf of a foreign state: 

  • head of state or head of government member of the executive council of government or member of a legislature; deputy minister or equivalent rank; ambassador, or attaché or counsellor of an ambassador; military officer with a rank of general or above; president of a state-owned company or a state-owned bank; head of a government agency; judge of a supreme court, constitutional court or other court of last resort; or leader or president of a political party represented in a legislature.

• “Politically exposed domestic person” (domestic PEP): an individual who holds or has held within the last 5 years one of the following specific office or positions in or on behalf of the Canadian federal government, a Canadian provincial (or territorial) government, or a Canadian municipal government: 

  • Governor General, lieutenant governor or head of government; member of the Senate or House of Commons or member of a legislature; deputy minister or equivalent rank; ambassador, or attaché or counsellor of an ambassador; military officer with a rank of general or above; president of a corporation that is wholly owned directly by Her Majesty in right of Canada or a province; head of a government agency; judge of an appellate court in a province, the Federal Court of Appeal or the Supreme Court of Canada; leader or president of a political party represented in a legislature; or mayor.

• “Head of an international organization” (HIO): an individual who currently holds or has held within the last 5 years the specific office or position of head of an international organization and the international organization that they head or were head of is either: 

  • an international organization established by the governments of states;

  • an institution established by an international organization; or

  • an international sports organization.

USING OREA form 635

Where there are two agents involved in a transaction and the funds are deposited in the listing agent's account the buyer's agent is responsible for completing the Receipt of Funds Record.   However, if the buyer is unrepresented, or the agent is representing both parties the listing REALTOR® is required to complete the form. 

The Receipt of Funds record must contain: 

- Who the funds are from 

- The form in which the funds were received (cash, cheque, draft, etc.) 

- The amount and currency of the funds 

- The date of the transaction 

- The purpose and details of the transaction including address

- The Accounts that were affected by the transaction (typically client's and brokerage trust account)

Account Numbers!

This last one gets overlooked far too often.  You are expected to record the account number the deposit funds originated from.  If the client has provided a certified cheque that is not an issue it will be on the cheque.  A bank draft will not have this information.  Nor will a direct deposit or wire transfer.  You will need to ask your client.  We have produced a client information piece available on the Client Studio that will help you explain why this is required. 

If the buyer agent's client provides funds directly to the listing agent, where a client account is affected (e.g. client's chequing account), the buyer agent is only obligated to take reasonable measures to obtain the account number, the name of the account holder, the type of account and any reference numbers.  

Reasonable measures means you ask and you have a record of asking (such as in Follow up Boss). You are not to simply write down "I asked".  If we see a failed attempt to obtain the account number FUB will be checked for the record of communication.  You must record your efforts on the Receipt of Funds by Selecting  “Other, explain:” and indicate that “asked buyer on [DATE] and the buyer refused to disclose".  (see Job Aid below)

If funds are deposited into a listing agent's trust account, the buyer's agent is only required to record the fact that the funds were deposited into the listing agent's trust account but is not required to include the number of the trust account or the name or entity that holds the trust account. 

Multiple Deposits

If the deposit is broken up (such as a further deposit of... clause) or, the deposit is coming from different sources (accounts or people) you need to record each instance.

Important!

If the deposit is coming from someone other than the purchaser that person(s) providing the deposit need to be identified using the individual identification form (OREA FORM 630) as they are third parties.  This includes transactions involving Corporations.

Fintrac stipulates that funds totaling $10,000 or more in cash (i.e. coins, notes issued by the Bank of Canada, and coins or bank notes of countries other than Canada), is a Large Cash Transaction and a Record must be created and maintained.  If two or more cash transactions of less than $10,000 each are made within a 24-hour period by or on behalf of the same client, these are considered to be a single large cash transaction if they add up to $10,000

Our deposit information form stipulates NO CASH DEPOSITS

However if an agent becomes aware of a cash deposit via a direct deposit at a Branch Location (identified by the deposit slip forwarded by the Buyer's agent) they must inform Deals@HouseSigma.com immediately REGARDLESS OF THE AMOUNT

As a Brokerage we will determine the appropriate course of action.

For many years we were told FINTRAC isn't required on leases.  That isn't quite accurate.

You are not required to identify your lease clients.

However, we are required to identify anyone where there is a cash transaction larger that $10,000.

Additionally a client who is prepaying the majority portion of the rent could be deemed to be suspicious under the FINTRAC Guidelines.

We know that in today's rental market this is happening frequently.  You will need to identify these clients with both the Individual Identification and Receipt of Funds following the guidelines we use on sale transactions.

High Crime Areas

We encourage you to look for and bookmark the police resource and crime mapping sites for your trading area (Examples found below in Resource Links)

A suspicious transaction is any real estate transaction that an agent has reasonable grounds to suspect is related to the commission of a money laundering or a terrorist activity financing offence. Suspicious transactions may have been completed or simply attempted by the client. Note, however, simply because a client attempts to conduct a transaction, but does not complete it, does not necessarily mean the transaction is suspicious. 

That said, the circumstances surrounding it might contribute to it being suspicious. 

FINTRAC’s guidance outlines possible indicators of suspicious transactions:

• A client arrives at a real estate closing with a significant amount of cash. (Remember that any cash amount equal to $10,000 or more MUST be recorded and reported)

• A client purchases property in the name of a nominee such as an associate or a relative other than a spouse.

• A 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.

• A client inadequately explains the last minute substitution of the purchasing party's name.

• A client negotiates a purchase for market value or above asking price, but records a low value on documents, paying the difference "under the table".

• A client sells property below market value with an additional "under the table" payment.

• A client pays initial deposit with a cheque from a third party, other than a spouse or parent.

• A client pays substantial down payment in cash and balance is financed by an unusual source or offshore bank.

• A client purchases personal use property under corporate veil when this type of transaction is inconsistent with the ordinary business practice of the client

• A client purchases property without viewing it (judgement must be used in regards to virtual viewings for clients not present)

• A client purchases multiple properties in a short time period, and seems to have few concerns about the location, condition, and anticipated repair costs of each property.

• A client pays rent or the amount of a lease in advance using a large amount of cash.

• A client is known to have paid large remodelling or home improvement invoices with cash on a property for which property management services are provided.

• A client starts to make an offer on the purchase of a house with a large deposit, but will not finalize the offer once asked to provide identification.

You need to be checking against this list frequently against you transactions.  Flagging something as suspicious doesn't mean FINTRAC will be kicking down your client's door.  It means we have done our due diligence and given some thought to circumstances that MAY require more questions asked.  

Additional Examples can be found here

https://www.fintrac-canafe.gc.ca/guidance-directives/transaction-operation/indicators-indicateurs/real_mltf-eng#s10

As outlined in our full FINTRAC POLICY,

A terrorist or terrorist group includes anyone that has as one of their purposes or activities facilitating or carrying out any terrorist activity.  It can be a person, group, trust, partnership or fund or an unincorporated association or organization. This includes, but is not limited to anyone on websites provided below in the Resource Link Section.

The brokerage expectation is that its representatives will reference the above website to ensure they are not dealing with an identified individual, entity or organization and will immediately flag and notify the compliance officer (BOR) if this is the case.

While FINTRAC has been part of our day to day business lives for quite some time now there have been changes and clarifications that have been shared with us.  Let's review where the majority of oversights are made

Not enough detail in Occupation

Not including the Bank Account number of the account the Deposit originated from

Not identifying Tenants with large cash transaction or prepaid rent

Not identifying individuals on failed transactions (ie Mutual Release if funds were issued this must be done)

In addition to providing you with Job Aides to assist you with the completion of documents we have updated our Deal Submission Form to assist both you and ourselves in ensuring we are "Audit Ready".

You will very shortly see changes to the Deal Submission Sheet.  When those updates are made our HouseSigma Fintrac Policy will be updated accordingly and completion of those fields will be mandatory.

Fintrac Guide to Identification

https://www.fintrac-canafe.gc.ca/guidance-directives/client-clientele/Guide11/11-eng#s8

FINTRAC Guide to Suspicious Transactions

• Video 1 – The importance of suspicious transaction reports

• Video 2 – Understanding reasonable grounds to suspect

High Crime Areas

We encourage you to look for and bookmark the police resource and crime mapping sites for your trading area.

Example:

Toronto London Peel Ottawa

List of Terrorist Individuals and Organizations

https://www.publicsafety.gc.ca/cnt/ntnl-scrt/cntr-trrrsm/lstd-ntts/crrnt-lstd-ntts-en.aspx

https://laws-lois.justice.gc.ca/eng/regulations/SOR-2002-284/page-1.html#h-694379

List of High Risk Countries Updated November 29 2022

https://fintrac-canafe.canada.ca/notices-avis/avs/2022-03-28-eng

The following jurisdictions have developed an action plan with the FATF to address identified strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing: Albania, Barbados, Burkina Faso, Cambodia, the Cayman Islands, Haiti, Jamaica, Jordan, Mali, Malta, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Philippines, Senegal, South Sudan, Syria, Turkey, Uganda, United Arab Emirates, and Yemen.

Also included are Iran and the Democratic People's Republic of Korea,

https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-march-2022.html

Ministerial Directives

https://www.fintrac-canafe.gc.ca/obligations/directives-eng