Humber/Ontario Real Estate Course 1 Exam Practice

If a salesperson suspects that the purchase of a property may involve money laundering, what action should be taken?

1. A suspicious transaction report must be sent both to FINTRAC and to local law enforcement

2. This information must be given to the broker of record, who then prepares a suspicious transaction report and sends it to FINTRAC

3. This suspicion must be fully verified and confirmed before sending it to the appropriate federal organization

4. A suspicious transaction report should be sent to FINTRAC as soon as practicable

The correct answer is: A suspicious transaction report should be sent to FINTRAC as soon as practicable

The correct answer emphasizes the urgency of addressing suspected money laundering activities. When a salesperson suspects that a property transaction may be linked to money laundering, they are legally obligated to take immediate action. Submitting a suspicious transaction report to FINTRAC, which stands for the Financial Transactions and Reports Analysis Centre of Canada, is essential because it allows this federal organization to conduct further investigations. This action must be taken as soon as practicable to ensure that any suspicious activity can be monitored and investigated without unnecessary delay. The time-sensitive nature of money laundering means that early reporting can help in preventing further illicit activities. The rationale for the other options underscores various procedures that may not align with legal requirements. For instance, while informing the broker is important, the immediate action is to report directly to FINTRAC to fulfill the legal obligation. Additionally, the notion of verifying and confirming suspicions before acting can lead to delays that may hinder law enforcement efforts, making it impractical in urgent scenarios like suspected money laundering.