The Financial Transactions and Reports Analysis Centre of ÎÚÑ»´«Ã½ (Fintrac) has fined West Vancouver real estate firm Masters Realty (2000) Ltd., also operating as RE/MAX Masters Realty, $83,655 for five compliance violations of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
In 2021, investigators for the financial regulator — whose mandate is to detect and deter money laundering and terrorist financing — found numerous documentation deficiencies, according to a July 16 public notice of administrative proceedings.
Fintrac determined RE/MAX Masters Realty was not documenting enough information to properly assess money laundering risks.
In one transaction, RE/MAX Masters Realty failed to record receipt of funds. Another two instances included not documenting a client’s principal business in addition to one instance where occupation was “insufficiently” detailed.
“Masters Realty (2000) Ltd. failed to institute and document the prescribed review of its compliance program to test the effectiveness of its policies and procedures, risk assessment and training program,” the notice states.
RE/MAX Masters Realty also “failed to keep prescribed identification information in client information records,” including failing to record the identification information of two persons who provided funds.
The Fintrac notice does not identify the individuals or teams involved in the violations.
RE/MAX Masters Realty managing brokers are listed by the ÎÚÑ»´«Ã½ Financial Services Authority (BCFSA) online.
BCFSA does not have any conditions placed on RE/MAX Masters Realty as of July 16.
In announcing the fine, Fintrac also touted its record in the last year, noting “in 2023-24, Fintrac issued 12 notices of violation of non-compliance to businesses for a total of $26,115,999.50.”
One of those 12 notices is for Toronto Dominion Bank — a $9.2-million fine for anti-money laundering (AML) violations.
TD Bank is also being investigated in the U.S. for AML violations and reportedly faces up to $4 billion in fines, although has reported the bank has set aside $450 million for the proceedings it faces.
Despite being unable to determine the exact impact money laundering has on home prices, the real estate sector was of top concern to the Commission of Inquiry into Money Laundering in ÎÚÑ»´«Ã½ based on its .
Of the 101 recommendations Commissioner Austin Cullen made in his final report, 40 are directly related to real estate, and several others are ancillary, such as proposals to strengthen AML policies within financial institutions and the asset forfeiture legal regime, as well as greater controls on notaries and lawyers, who process transactions.
Editor's note: This article was updated to clarify Fintrac’s notice did not identify individuals or teams involved in the violations.
