The official copy of all reports or forms required for FINTRAC compliance must be kept in the brokerage, or the files must indicate where the official copy is being stored. Records must be kept on file for five years from the date they were created.

Records can be kept in a machine-readable or electronic format – provided that a paper copy can be produced upon request. If requested by FINTRAC, forms must be produced within 30 calendar days.

These are the reports or forms that brokers are required to keep on file:

• Large Cash Transaction Report
  There are new requirements for this report, so do not rely on forms or information prepared prior to June 2008. In addition to the following, this report must include all of the personal or entity identification requirements as detailed here. You can do this by using the form developed by CREA. The specific details about the Large Cash Transaction report now required are:

  • The amount/the currency/details of how funds were received.
  • The transaction date/purpose/nominees (if any).

• Receipt of Funds Record
  This report tracks information on amount of funds received, including currency, and detail show the funds were received. It must also include the date of transaction, details of individuals involved, and the reason for the financial transaction (i.e. deposit, etc). This does NOT have to be completed if the deposit goes directly to someone not licensed in the trading of real estate, such as a builder or developer. If the builder is represented by a REALTOR® in the transaction, however, the Receipt of Funds Record is required.
  
  If one of the parties in the transaction is unrepresented, the real estate agent representing the other party is responsible for completing and retaining the Receipt of Funds Record, and must make reasonable attempt to gather the information about the deposit. If the account information is unavailable, you should indicate why.
  
  Where both parties are represented and the funds are deposited in the listing broker’s account, the buying agent must indicate that fact. They are NOT required to include the number of the listing brokers’ trust account, or the name or entity that holds the account.
  
• Suspicious (Attempted) Transaction Report
  This report is unchanged. If you have reasonable or factual grounds to suspect that a transaction, or an attempted transaction, may be linked to criminal activity or the proceeds of crime, you must submit a report to FINTRAC within 30 days, and the broker office must keep the report on file for five years.
  
  Once you have recorded this information, if individuals are involved you must make a reasonable effort to also track their name, address, date of birth, and occupation or principal business.
  
  Where entities are involved, you must track the name of that entity, their address and principal business. This information must be obtained within 30 days of the receipt of funds.
  
  Where corporations are involved, you must record a copy of the part of the official corporate records that give an individual the power to sign documents on behalf of the corporation. This information must be obtained within 30 days of the receipt of funds.
  
• Individual Identification Information Record
  This is the record you must prepare to confirm the identity of any individual involved in a transaction. It must be completed by closing. It is very important that an Individual Identification Information Record be completed prior to, or at the same time as a Receipt of Funds Record is completed. As a result it is recommended it be completed for a buyer when an offer is submitted and/or a deposit made, and completed for a seller when the seller accepts an offer.
  
  If you think the individual is representing a third party, you must also attempt to verify the identification of that third party (Section B of the form).
  
• Corporation/Entity Identification Information Record
  This is the record you must prepare to confirm the existence of any corporation or other entity. In the case of a corporation, in addition to confirming its existence, you also have to determine the corporation’s name, address and the names of its directors. It is very important that a Corporation/Entity Identification Information Record be completed prior to, or at the same time as a Receipt of Funds Record is completed.
  
  As a result it is recommended it be completed for a buyer when an offer is submitted and/or a deposit made, and completed for a seller when the seller accepts an offer.
  
  To confirm the existence of a corporation as well as the corporation's name and address,you must refer to the corporation's certificate of corporate status; any record filed annually under provincial securities legislation; or any other record that confirms the corporation's existence. Examples of these include such other records as the corporation's published annual report signed by an independent audit firm, or a letter or a notice of assessment for the corporation from a municipal, provincial, territorial or federal government.
  
  In the case of an entity other than a corporation, you can refer to a partnership agreement, articles of association or any other similar record that confirms the entity's existence. The record you use to confirm the existence of an entity can be paper or an electronic version. Although such information may be available verbally (such as by phone), it is not acceptable for these purposes, as you have to refer to a record. If the record is in paper format, you have to keep the record or a copy of it.
  
  If the record is an electronic version, you have to keep a record of the entity's registration number, the type and source of the record. An electronic version of a record has to be from a public source.
  
• Self-Assessed Risk Management Report
  This must be completed at least once every two years, and is intended to engage management in the detection and deterrence of money laundering and terrorist financing opportunities.It is based on a risk-based approach, and an overview or risk assessment of the broker business. You will be required to identify risk mitigation processes or procedures if required (i.e. controls to handle risks) and maintain ongoing monitoring of higher risk transactions. The form developed by CREA here, is designed to help you meet this compliance requirement. It is also posted in the Money Laundering Compliance Centre on REALTOR Link®.