Realtors help combat organized crime and terrorism

The federal government's new regulations to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act come into force on June 23 this year.

"In 2007, the Financial transactions and Reports Analysis Centre of Canada (FINTRAC) reported 193 case disclosures to CSIS and other law enforcement agencies with a total value of $9.8 billion. Of theses cases, half had a real estate component of some sort," explains Andrew Peck, Royal Pacific Realty vice-president and past president of the B.C. Real Estate Association.

"Realtors are important partners in the federal government's push to combat criminal activity and terrorism in Canada," he says.

FINTRAC is a federal government agency created to provide suspicious transaction information to police and the CSIS. FINTRAC collects and analyses reports from accountants, banks, casinos and real estate professionals as part of Canada's program to halt money laundering and terrorist financing.

Since 2001, when the original legislation was passed, realtors have reported any transactions of $10,000 or more to FINTRAC.

Now, under the new regulations, they will also document proof of a client's identity. If the client is a corporation, they'll ask for a copy of official corporate records, and for directors' names and where clients are overseas, they will use an agent to identify third parties.

"Realtors care about the quality of life in their neighbourhoods and communities," says Peck. "Money laundering and terrorist financing is a growing problem and we're doing everything we can to help combat it."

Source: The Vancouver Sun 2008