Humber/Ontario Real Estate Course 3 Exam Practice

Regarding FINTRAC compliance, what is a salesperson's obligation?

1. Develop a personal compliance regime

2. Report any suspicious transactions

3. Review written compliance policies annually

4. Salesperson and brokerage must create training programs

5. Follow employer’s established policies without alteration

6. Report only transactions above a certain threshold

The correct answer is: Report any suspicious transactions

A salesperson's obligation concerning FINTRAC compliance primarily revolves around the requirement to report any suspicious transactions. This obligation ensures that any activity that may be related to money laundering or terrorist financing is flagged and reported to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The rationale behind this is to maintain the integrity of the financial system and to assist in the detection and prevention of illegal activities. By being vigilant and proactive in reporting suspicious transactions, salespeople play a crucial role in the broader compliance framework that protects real estate transactions from illicit activities. This requirement is a critical component of a salesperson's responsibilities, as it demonstrates their commitment to ethical practices in their profession, safeguarding both their clients and the financial system. To clarify the context of the other options, developing a personal compliance regime, reviewing written policies, creating training programs, or following employer policies may be part of a broader compliance culture within a real estate brokerage. However, these actions cannot replace the necessity of reporting suspicious transactions, which is a direct obligation under FINTRAC regulations. Additionally, while there may be thresholds for certain reporting requirements, all suspicious transactions, regardless of amount, must be reported.