Collecting Personal Information
Before dealing with individual forms, it is important to know the details of the personal information you must collect for FINTRAC compliance. This is because effective June 23rd, 2008, you must keep an Identification Information Record for every real estate transaction you are involved in.

The information you must keep on file (depending on the situation) must include the individual involved, including name, address, date-of-birth, occupation or principal business, the type of ID provided and unique ID number as verification of this personal information.

When identifying individuals for creation of a record, you must identify the individual yourself, or if the individual is not present, you must:

• Use two of five verification methods if the individual resides in Canada;or
• Use an agent or mandatary.

If identification was done in person you have to record the number on the original identification issued by government, but keeping actual photocopies of the ID is not required. Provincial heath cards are OK except in Ontario, Manitoba, and PEI. It is recommended NOT to use a Canadian social insurance (SIN) card because FINTRAC will not accept the information from it.

IMPORTANT: When you are using approved credentials to verify identification of an individual, you must complete an Individual Identification Information Record. Making a photocopy of a drivers licence, for example, and sticking the copy in the file doesn’t meet the requirements for compliance.

As a broker, you are responsible for identifying the individual, or confirming the existence of the entity you represent (buyer or seller).

If there are unrepresented buyers or sellers involved in the transaction, the broker representing the other party is responsible for collecting the required identification information, and keeping it on file. If the unrepresented individual refuses to provide the required personal information, document this and keep this record on file. If you have reasonable grounds for suspicion about the unrepresented individual and their reasons for refusal, you must file a report with FINTRAC.

In other words, in this situation you should file a Suspicious Transaction where there is suspicion; otherwise, you are only required to keep a record or report of the attempt to "identify", as well as the reason(s) the unrepresented individual stated for refusing to be identified, or provide identification documents.

There are also new requirements for verifying identification of a client if there is no face-to-face meeting where that information can be collected and recorded. In this case the new FINTRAC regulations require the broker to use an approved agent or representative (legally known as a mandatary) to identify clients on their behalf. There MUST be a contractual agreement with the agent or representative whose services are being used. CREA has prepared a template agreement you can use for this purpose.

The brokerage must receive the following information to meet the compliance requirements for client identification:

• Type of identification (drivers licence, passport, etc)
• Identification number of that document; and
• The issuing jurisdiction (country, province, etc.)

The broker’s contracted representative must verify ORIGINAL identification documents, of the client, then send copies to the broker office. You are ultimately legally responsible for what these representatives do!

If the non face-to-face client resides in Canada, and there is no contractual agent/mandatary, then you must use two of five methods approved by FINTRAC.

1. Verify an independent ID product (Must have a photo and registration number, such as bus pass or club membership card)
2. Verify a credit file (i.e. Equifax)
3. Attestation of ID from a Commissioner of Oaths or guarantor (the detailed list of guarantors is on the FINTRAC website)
4. Cleared cheque drawn on a deposit account from a Canadian financial institution
5. Confirm existence of a deposit account from a Canadian financial institution
   NOTE: Neither 1 & 2, nor 4 & 5, can be combined as the two required methods

CREA has created an Individual Identification Information Record (report form) to assist brokers and agents report the necessary information. It is available in the Money Laundering Compliance Centre on REALTOR Link®, or in WEBForms™ and here. This document must be completed by the REALTOR® whenever they act as an agent in respect of the purchase or sale of real estate. The broker is responsible for keeping this document on file for five years.

Collecting Entity Information
If there is an entity (corporation, partnership, charity, etc) involved in the transaction, the broker or agent must verify its existence. The existence of the entity must be confirmed within 30 days of the transaction by presentation of:

• a partnership agreement; or
• the articles of association;
• or any other original document confirming the legal existence.

In addition, you must also confirm the names of the corporation’s Directors. It is recommended that this verification take place.

It is recommended that this verification be completed

• for a buyer when the offer is submitted and/or a deposit made, and
• for a seller when the seller accepts the offer.

You are required to keep a copy of the record of the entity’s existence (e.g. certificate of corporate status, published annual report, govt. notice of assessment) If the record is an electronic version, a record of the corporation’s registration number and type and source must be kept (e.g. Corporations Canada website).

• For corporations specifically, the legal existence must be confirmed by verification of the certificate of corporate status, or through records filed manually under provincial securities legislation. You can also use any other legal record confirming the existence of the corporation, and then also confirm the names of the corporation’s Directors.
• CREA has created a Corporation/Entity Identification Information Record to assist brokers and agents report the necessary information. It is available in the Money Laundering Compliance Centre on REALTOR Link®, or in WEBForms™ and is available here. This document must be completed by the REALTOR® whenever they act in respect of the purchase or sale of real estate. The broker is responsible for keeping this document on file for five years.

CREA has also prepared a template letter a member can use to request information from the legal or corporate representative of a buyer, specifically for use in verification of information required for FINTRAC Compliance. It is also posted in the Compliance Centre on REALTOR Link®.

Verification of Third Parties
When completing an Individual or Corporate/Entity Identification Information Record, you must also try to determine whether or not the individual or the “entity” is acting on behalf of a third party. If you cannot determine if there is a third party, but there are reasonable grounds to suspect that the client is acting on behalf of someone else (third party) you must keep a record of that fact.