Real estate agents are now on the front line of money laundering prevention. The federal government imposed several new agent obligations on Monday. Among other things, real estate agents now need to:
The goal in this is to thwart things like money laundering and mortgage fraud. Jail and fines will be imposed on agents for non compliance–starting after the grace period ends in December.
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As working for a Toronto real estate company I think that it`ll be a touchy procedure but it`s undoubtedly necessary. Investing into real estate is not as risky so it`s easier for those who want to launder their dirty money and until now it wasn`t difficult to keep it hidden. We need that legislation and I hope that both buyers and sellers will be eager to cooperate as in this business the most important quality is reliability.
This should have never been offloaded to Realtors. It should have been be a lawyer/notary function. They are properly trained for this and have to confirm identity anyway.
Lionel, unless I am missing something there is nothing being offloaded to the Realtors. Everyone else in the process who has to verify the identities of the parties involved still has to do their jobs, Realtors are being asked to do one additional thing.
Having said that, I don’t know how effective this measure is going to be. I would guess that if someone is trying to pull off money laundering or mortgage fraud then there are likely shady parties involved in the process from the real estate agent to the broker/lender through to the lawyer.
My lawyer already askes for 2 ID’s EVERY TIME, despite knowing us well for over 2 years
I do agree, it’s useful, but it’s like a gun ban, people who want to do it, will get around it
Just a friendly heads up…don’t forget to change your title to Mortgage Agent or Mortgage Broker if applicable. These are the only acceptable titles allowed by FSCO.
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