Administrative monetary penalty on HomeLife New World Realty Inc.
[2025-11-20]
HomeLife New World Realty Inc., a real estate brokerage with locations in Toronto and Richmond Hill, Ontario, was imposed an administrative monetary penalty of $36,135 on May 21, 2025, for committing 3 violations. The violations were found during the course of a compliance examination. The administrative monetary penalty has been paid in full and the case is closed.
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 – Proceeds of Crime (Money Laundering) and Terrorist Financing Act , subsection 9.6(1) and Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 156(1)(b)
FINTRAC's review of HomeLife New World Realty Inc.'s policies and procedures found that they were incomplete and/or not applied. Specifically, HomeLife New World Realty Inc.'s policies and procedures for conducting the determination of politically exposed persons and heads of international organizations (PEP or HIO) were not applied consistently across its business relationships. The examination revealed that HomeLife New World Realty Inc. did not conduct a PEP or HIO determination and/or keep a record of this in 19 of the 50 completed transactions that FINTRAC reviewed.
HomeLife New World Realty Inc.'s policies and procedures for ongoing monitoring did not specify the frequency for when it conducts ongoing monitoring of its business relationships, nor were the ongoing monitoring policies and procedures applied consistently across its business relationships. In its review of the same 50 completed transactions, FINTRAC determined that in 19 transactions there was no evidence of ongoing monitoring activities being conducted and/or documented.
Violation #1 is classified by the regulations as a Serious violation. The imposed penalty takes into account the criteria in section 73.11 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.
- Violation #2
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Failure to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors – Proceeds of Crime (Money Laundering) and Terrorist Financing Act, subsection 9.6(1) and Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 156(1)(c) and subsection 156(2)
FINTRAC's review of HomeLife New World Realty Inc.'s documented risk-based assessment found that it was incomplete as it did not consider the prescribed factors. Specifically, HomeLife New World Realty Inc.'s risk assessment did not provide an assessment of the risks related to its products, services and delivery channels, nor did it provide an assessment of risks for the geographic locations in which it operates. Further, the risk assessment did not provide an adequate assessment of the money laundering and terrorist financing risks reflective of HomeLife New World Realty Inc.'s clientele and business relationships. The risk assessment also did not consider new developments and technologies.
Violation #2 is classified by the regulations as a Serious violation. The imposed penalty takes into account the criteria in section 73.11 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.
- Violation #3
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Failure to keep prescribed records – Proceeds of Crime (Money Laundering) and Terrorist Financing Act, section 6 and Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraph 58(1)(a) and paragraph 58(1)(b)
In 3 instances of 22 records reviewed, HomeLife New World Realty Inc. failed to keep adequate records related to the receipt of funds by omitting to include required information in those records, such as the account number affected by the transaction, the account type affected by the transaction, the name of the account holder for the account affected by the transaction, and the method by which the funds were received. Further, in 14 out of the 50 completed transactions reviewed, HomeLife New World Realty Inc. failed to keep adequate records related to client information by not obtaining an adequate occupation or a complete physical address.
Violation #3 is classified by regulations as a Minor violation. The imposed penalty takes into account the criteria in section 73.11 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and section 6 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Administrative Monetary Penalties Regulations.
Related link
- Date Modified: