Humber/Ontario Real Estate Course 3 Exam Practice

How should a salesperson respond if they suspect illegal activity in a real estate transaction?

1. Report the suspicion to the Real Estate Council of Ontario.

2. Report the suspicious transaction to FINTRAC.

3. Submit the details to local law enforcement.

4. Consult their employing brokerage for next steps.

5. Report it as a large cash transaction to FINTRAC.

6. Wait for further evidence before reporting.

The correct answer is: Report the suspicious transaction to FINTRAC.

The appropriate response in this scenario involves reporting the suspicious transaction to FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). This is correct because FINTRAC is the federal agency responsible for collecting, analyzing, and disclosing financial intelligence in order to detect and prevent money laundering and terrorist financing. Reporting to FINTRAC is particularly important when there is a suspicion of activities that may involve proceeds of crime or funds that may be used for illegal purposes. In the context of real estate, transactions that involve large sums of cash or other unusual financial behaviors can trigger reporting requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. It is crucial for real estate salespeople to understand their obligation to report suspicious transactions to FINTRAC, as failure to do so can result in legal repercussions. The other choices involve actions that may be necessary or relevant in certain circumstances, but they do not take precedence over the requirement to report to FINTRAC when there is suspicion of illegal activity in a transaction. Consulting an employing brokerage is often a good step, but it does not replace the necessity of reporting to FINTRAC. Similarly, local law enforcement may eventually be involved, but the first step in addressing the suspicion is to inform