2019-04 RE-Anti-Money Laundering News Release
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BC Real Estate Sector Submits Anti-Money Laundering Recommendations To Government

Vancouver, BC - April 15, 2019. Organizations representing key professions in the BC real estate sector submitted joint recommendations to the provincial and federal governments today to help protect BC’s housing market from money laundering.
 
The participating organizations include the British Columbia Real Estate Association, the Appraisal Institute of Canada – BC Association, BC Notaries Association, Canadian Mortgage Brokers Association – British Columbia, and the Real Estate Board of Greater Vancouver.
 
In their submission, these organizations also commit to shared best practices to help keep the proceeds of organized crime out of the economy. Their efforts focus on helping protect the real estate market from unscrupulous operators and ensuring the public can have full confidence in BC’s real estate market. All of the organizations have fully supported and participated in the government’s investigations into money laundering and real estate.
 
A real estate transaction involves multiple professionals. It will take a coordinated effort by all involved, working in collaboration with government, to stop money laundering. The joint recommendations and best practices submitted by these organizations reflect their commitment to the professionals and consumers they serve.
 
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Read their submission to government:
  
Real Estate Sector Anti-Money Laundering Statement
                                   
As a group of real estate organizations representing industry professionals, we are committed to a transparent real estate market and to ensuring that the public can continue to have full confidence in the real estate industry. Illegal funds have no place in BC’s real estate market. We are supportive of the government’s investigations into money laundering and real estate, having actively participated in Peter German’s review and the Expert Panel on Money Laundering.

As an industry, we have come together to commit to shared best practices and make recommendations to government. By aligning as an industry and working in collaboration with government, we can help facilitate an environment in which consumers are well-served and industry professionals can thrive.

Anti-money laundering recommendations
Our collaboration has resulted in a commitment from the undersigned organizations to pursue the following shared best practices and recommendations for government:
  1. Accept only verified funds – For sectors of real estate that are not already required to do so, we recommend that they accept funds only in forms that are verifiable through Canadian financial institutions.
     
  2. Mandatory anti-money laundering education – We recommend the introduction of mandatory anti-money laundering education for all real estate professionals subject to the reporting requirements administered by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to ensure that those professionals are trained in recognizing and reporting suspicious transactions. FINTRAC should work with sector organizations, regulators and the provincial government to improve existing resources so that they better reflect real-world situations and improve compliance.
     
  3. Smart regulation – We recommend that the federal government amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to allow FINTRAC intelligence to be made available to additional regulatory authorities, including the BC Securities Commission and the Financial Institutions Commission (FICOM). Optimally, the federal and provincial governments, as well as their respective agencies, should coordinate their actions, share information, such as the provincial assignment registry, and create a comprehensive, efficient enforcement regime.
     
  4. Ongoing engagement – We recommend governments and regulatory agencies, including FINTRAC, better utilize on-the-ground experience of real estate professionals to develop compliance resources and test policy ideas. This will result in well-crafted, practical regulation and foster a culture of compliance to protect consumers and the economy.
     
  5. Timely and transparent reporting – We recommend that FINTRAC implement a framework to identify and report trends on a regular basis and in language that is consistent and understandable to professionals, the public and media. This reporting system should also include consistency in examinations with immediate feedback designed to help industry professionals improve their compliance systems.

For a backgrounder to the statement, click here.


Darlene K. Hyde
Chief Executive Officer
British Columbia Real Estate Association

 
Christina Dhesi
Executive Director
Appraisal Institute of Canada – BC Association
Jacqui Mendes
Chief Executive Officer
BC Notaries Association         
         
Samantha Gale
Chief Executive Officer
Canadian Mortgage Brokers Association –  British Columbia

 
Brad Scott
Chief Executive Officer
Real Estate Board of Greater Vancouver    
 

 

Media enquiries 

British Columbia Real Estate Association
April van Ert
Communications Manager
[email protected]
604.742.2797
Appraisal Institute of Canada – BC Association
Christina Dhesi, BA, DULE
Executive Director
[email protected]
604.284.5515
BC Notaries Association
Jacqui Mendes
Chief Executive Officer
[email protected]
778.327.6390
Canadian Mortgage Brokers Association – British Columbia
Samantha Gale, LLB
Chief Executive Officer
[email protected]
604.408.9989
Real Estate Board of Greater Vancouver
Craig Munn
Manager, Communications
[email protected]
604.730.3146

 
 

BCREA is the professional association for about 23,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province's 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.

To demonstrate the profession's commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.

To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.

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