New Identification Requirements for Home Buyers and Sellers in Canada
On June 23, 2008, new federal money laundering and anti-terrorists financing regulations came into effect. These require real estate agents and brokers (amongst others) to collect and keep personal identification from buyers and sellers.
REALTOR® have been required to report any suspicious or large cash financial transactions of $10,000 or greater since 2001. This year the regulations, under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act have been changed to increase the reporting. Real estate agents and brokers are now required to document personal information and proof of identity of their clients in each and every transaction. This includes corporations and purchasers in another city, province or country. If the buyer or seller is not represented by a REALTOR®, the agent for the buyer or seller is required to obtain the personal information and identification of the other party.
What will the real estate agent need for information? Using a government issued document, such as passport, drivers license or residency card, the agent will record date of birth and occupation. The law requires the agent to keep the information for a period of five years.
There is a lot of paperwork involved in buying and selling a home. The forms needed for this information will be part of the package you complete.
For additional information on these and other requirements, please go to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) or call 1-866-346-8722.
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