Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has published a Special Bulletin on financial activity associated with suspected sanctions evasion.

The guidance states, as of August 19, 2024, all reporting entities subject to the FINTRAC Regime (including brokers and sales representatives) are obligated to submit a suspicious transaction report to FINTRAC if there are reasonable grounds to suspect that a transaction or attempted transaction is related to sanctions evasion.

What are sanctions?

All Canadians, including real estate brokers and sales representatives, have been obligated to comply with Canadian sanctions for many years. What is new, as of August 19, 2024, is the obligation to report sanctions evasion to FINTRAC.

Sanctions are a foreign policy tool used to address international peace and security concerns, gross violations of human rights, and significant foreign corruption. Canadian sanctions place restrictions on the activities permissible between Canadians and foreign states, individuals, or entities. Canadian sanctions can be issued under the Special Economic Measures Act (SEMA), United Nations Act (UNA) and the Justice for Victims of Corrupt Foreign Officials Act (JVCFOA). 

Brokers and sales representatives should review the Special Bulletin on financial activity associated with suspected sanctions evasion to ensure they understand what sanctions are, and what characteristics may indicate that a sanction evasion is occurring in a purchase or sale transaction.

How do I report to FINTRAC?

If a broker or sales representative has reasonable grounds to suspect a purchase or sale transaction (or attempted transaction) is related to sanctions evasion, they must report the transaction to FINTRAC in the same manner they would report a suspicious transaction. 

However, as previously reported, FINTRAC’s Web Reporting System, the mechanism by which most brokers and sales representatives report suspicious transactions, is currently unavailable due to a cyber incident.  

FINTRAC estimates it may be several months before the Web Reporting System is back online. As a result, REALTORS® should continue to identify and internally document all reportable sanctions evasion transactions, and be prepared to report them to FINTRAC once its systems are back online. 

REALTORS® should continue to monitor FINTRAC’s website for updates.