Humber/Ontario Real Estate Course 3 Exam Practice

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Under what circumstance must a salesperson report a $15,000 deposit to FINTRAC?

If received in cash or virtual currency
If received by bank draft
If received by certified cheque from a public entity
If received by personal cheque
Never, irrespective of the situation
If received through wire transfer

The correct answer is: If received in cash or virtual currency

A salesperson must report a $15,000 deposit to FINTRAC if the funds are received in cash or virtual currency. This requirement stems from Canada's regulations aimed at preventing money laundering and terrorist financing. When large sums of money are transacted in cash or through cryptocurrencies, there is a higher risk of untraceable transactions that can be used for illicit purposes. Financial Institutions and certain entities, including real estate salespersons, are obligated to report any cash transactions of $10,000 or more, as well as transactions involving virtual currencies. This creates a framework for monitoring large transactions that could indicate suspicious activities. In contrast, deposits made via bank drafts, certified cheques, or personal cheques generally do not have the same legal reporting requirements since they are considered traceable methods of payment, allowing for better financial oversight and accountability. As a result, the emphasis on reporting cash and virtual currency transactions helps maintain transparency in financial dealings and protects the integrity of the real estate market.