Skip to content
Login
Email
902.368.8451
facebook Instagram linked in
Back to Communique

FINTRAC Update

FINTRAC Update:
New Ministerial Directive for Russian Transactions

On February 24, 2024, the Minister of Finance issued a new Ministerial Directive under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (“FINTRAC Regime”) applicable to the real estate sector. The Ministerial Directive requires all reporting entities (including brokers and sales representatives) to treat all transactions originating from, or destined to, Russia as high risk.It is the responsibility of each brokerage to:

  • Document in the brokerage’s risk assessment that transactions to and from Russia are high risk;
  • Update policies and procedures to include information on how the brokerage becomes aware of ministerial directives issued by the Minister of Finance (i.e.: FINTRAC RSS feed, join FINTRAC email list, FINTRAC website);
  • Implement specific measures to mitigate the risk posed by high-risk transactions (i.e.: take additional steps to identify clients involved in such transactions, keep a record of all actions with the client, report a suspicious transaction); and
  • Ensure that the measures are understood by all sales representatives.

Minor tweaks to the Canadian Real Estate Association's (CREA) FINTRAC Regime resources will be made next week to remind REALTORS® of the existence of the new Ministerial Directive.Note that a separate Ministerial Directive, applicable to North Korea, which has been in force since 2017, continues to apply.For more information on the Russian Ministerial Directive, please visit: https://fintrac-canafe.canada.ca/obligations/dir-rus-eng.If you have questions about FINTRAC, please refer to the resources available on member.CREA.ca or contact CREA Member Support at 1-888-237-7945.

Powered By GrowthZone