Administrative monetary penalty on Masters Realty (2000) Ltd.
From: Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
[2024-07-16]
Masters Realty (2000) Ltd., also operating as RE/MAX Masters Realty, a real estate brokerage in West Vancouver, British Columbia, was imposed an administrative monetary penalty of $83,655 on January 8, 2024, for committing 5 violations. The violations were found during the course of a compliance examination in 2021. The administrative monetary penalty has been paid in full and proceedings have ended.
Nature of violation
- Violation #1
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Failure to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer – paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
Masters Realty (2000) Ltd. did not adequately apply, in practice, the following requirements: no record of the entity taking reasonable measures to make a third-party determination; procedures were not followed on the requirement to keep a receipt of funds records on one real estate deal; and the entity did not apply policies and procedures to keep a record of a business relationship with a client, and did not conduct the required ongoing monitoring of business relationships. Although, Masters Realty (2000) Ltd. had documented policies and procedures, the non-compliance reflects a failure to consistently apply certain requirements in practice. - Violation #2
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Failure to assess and document the risk of a money laundering or terrorist financing offence, taking into consideration prescribed factors – paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
Masters Realty (2000) Ltd. failed to assess and document the money laundering (ML) or terrorist activity financing (TF) risks. Although Masters Realty (2000) Ltd. used a generic form to gather client information, these forms were not sufficient for Masters Realty (2000) Ltd. to assess and document its ML/TF risks, considering the prescribed factors. - Violation #3
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Failure to institute and document the prescribed review – paragraph 71(1)(e) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
Masters Realty (2000) Ltd. failed to institute and document the prescribed review of its compliance program to test the effectiveness of its policies and procedures, risk assessment and training program. - Violation #4
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Failure to keep prescribed records – paragraph 39(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
Masters Realty (2000) Ltd. failed to keep prescribed information in client information records. Specifically, of the 25 completed real estate transaction records reviewed, the examination revealed three client information records with the following issues:- Two instances where the nature of the principal business was missing; and
- One instance where the occupation is vague and insufficiently detailed.
- Violation #5
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Failure to keep prescribed identification information – paragraph 64.2 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
Masters Realty (2000) Ltd. failed to keep prescribed identification information in client information records. Specifically, FINTRAC’s examination revealed two instances where Masters Realty (2000) Ltd. failed to record the identification information of two persons who provided funds. This information includes the type of identification document used to identify the individual; document number; province or state and country that issued the document; and, expiry date.
Related link
- Date Modified: