Your real estate agent must obtain personal information to comply with the law. It is the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) that requires financial institutions and real estate agents, among other professionals and services covered by the legislation, to obtain information about individuals and corporations who conduct financial transactions. These include depositing funds or buying and selling real estate. The Act also requires real estate agents to keep these identification records for five years.
Canada has had substantial anti-money laundering and terrorist financing legislation since 2001. Since then Realtors® have had a legal responsibility in Canada’s efforts to combat money laundering and terrorist financing. In addition to these original legal requirements, Realtors® must document personal information, including occupation, and proof of the identity of their client in each and every transaction. If the client is a corporation, Realtors® must obtain official corporate documents, and the names of directors.
The compliance requirements affect even a buyer or seller not using the services of a licensed real estate practitioner. If there is a real estate agent involved in the transaction, they are also required by law to verify that private buyer or seller’s information as well.
