Are real estate groups doing enough to fight money laundering?

by Gerv Tacadena on 11 Mar 2020

An assessment from the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC) showed that many real estate companies are failing to comply with anti-money laundering rules.

Citing the FinTRAC 2017-2018 assessment, the Organized Crime and Corruption Reporting Project (OCCRP) said that the real estate sector has yet to fully understand how money launderers can take advantage of the sector.

While the real estate sector showed improved anti-money laundering compliance since the previous audit, the FinTRAC report acknowledged that it "still has one of the lowest reporting levels."

Of the 500 companies audited by FinTRAC, 172 are real estate groups, which include developers, brokers, and sales representatives. The assessment found that agents were not equipped with the proper training to identify potential money laundering.

Also read: Most Canadians are concerned about money laundering

OCCRP said real estate-linked money laundering cases were common in cities like Toronto, Vancouver, and Montreal. This could be one of the reasons why the prices of properties in these cities increased significantly.

A 2019 report by an expert panel in British Columbia found that of the $7bn that was laundered in the province in 2018, $5bn went through real estate. This contributed to the 5% spike in property prices in BC.

As part of the efforts to combat dirty money in the province, the Real Estate Council of BC (RECBC) has launched a mandatory course on anti-money laundering for local agents.

"Protecting consumers so that they can feel confident about their real estate transaction is our first priority, and that's why we've decided to make this new course on anti-money laundering mandatory for all real estate professionals," RECBC CEO Erin Seeley said.

Post a Comment

Most Trending News

Strategies to Predictably, Reliably Grow Your Real Estate Business
News

This 7-day free masters summit will provide you with all the tips and tricks you need to get started in real estate investing, how to expand your real estate portfolio, and much more.

Read More
June virtual conference promises to turn agents into millionaires
News

“The easiest way to prove to people you can help them is to just start helping them, no strings attached,” said Craig Proctor, the master realtor who revolutionized the team concept.

Read More
Lead Gen Masters Summit
News

Are you struggling to obtain new, qualified leads as a real estate professional? Merged Media is hosting an online conference on May 13th to discuss digital marketing tactics to grow your portfolio.

Read More