Humber/Ontario Real Estate Course 3 Exam Practice

What must a real estate brokerage include in establishing a FINTRAC compliance regime?

1. If the brokerage handles 100 or more transactions annually

2. The appointment of a compliance officer

3. Written policies and procedures with initial but not ongoing training

4. Implementation no later than three months before registering under REBBA

5. The appointment of a compliance committee

6. Weekly monitoring and reporting

The correct answer is: The appointment of a compliance officer

A real estate brokerage must appoint a compliance officer as a central component of its FINTRAC compliance regime. The compliance officer is responsible for overseeing the brokerage's adherence to the applicable legislation regarding anti-money laundering and terrorist financing. This role includes ensuring that the brokerage implements effective policies and procedures, conducts training for employees, and maintains accurate records as mandated by FINTRAC. Having a designated compliance officer helps to demonstrate the brokerage's commitment to compliance and provides a point of accountability within the organization. The compliance officer plays a critical role in assessing risks, developing strategies to mitigate those risks, and ensuring that employees are educated on their responsibilities under the regime. Establishing a compliance framework without a compliance officer would likely fail to meet FINTRAC's requirements, as it would lack the necessary oversight and dedicated leadership essential for managing compliance effectively. The other options, while they touch on relevant aspects of compliance, do not fulfill this crucial element of establishing a compliant regime as required by FINTRAC.