Humber/Ontario Real Estate Course 3 Exam Practice

A brokerage compliance regime must include which among the following for FINTRAC adherence?

1. Initial but not ongoing training for registrants

2. Quarterly review meetings for compliance

3. Appointment of a compliance officer

4. Transaction assessments for all deals

5. Emergency procedures laid out for violations

6. Reporting mechanisms for suspicious activity

The correct answer is: Appointment of a compliance officer

The requirement for a brokerage compliance regime to include the appointment of a compliance officer is fundamental for ensuring adherence to FINTRAC regulations. A compliance officer is responsible for overseeing the implementation of anti-money laundering (AML) measures, ensuring that the brokerage adheres to legal and regulatory obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This role is crucial in fostering a culture of compliance within the organization, providing guidance to staff on adherence to policies and procedures, and serving as a point of contact for all compliance-related matters. The compliance officer typically oversees ongoing training, monitors compliance with established policies, ensures that appropriate risk assessments are conducted, and facilitates reporting of suspicious transactions. This centralized accountability helps ensure that the brokerage remains aligned with FINTRAC's requirements and protects the organization from potential legal ramifications associated with non-compliance. While the other options might represent best practices or components that could enhance a compliance regime, the core requirement established by FINTRAC is the appointment of a compliance officer who plays a crucial role in maintaining ongoing compliance and overseeing regulatory adherence.