Administrative monetary penalty on Houston & Associates Realty Ltd.

[2025-11-20]

Houston & Associates Realty Ltd., also operating as Houston Realty.ca, a real estate brokerage in Calgary, Alberta, was imposed an administrative monetary penalty of $117,975 on May 29, 2025, for committing 5 violations. The violations were found during the course of a compliance examination. Houston & Associates Realty Ltd. has appealed the decision to the Federal Court.

Nature of violation

Violation #1

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 determined that Houston & Associates Realty Ltd.'s policies and procedures was a generic template that was not tailored to its specific business operations. FINTRAC also determined that Houston & Associates Realty Ltd. did not adequately apply its policies and procedures in practice, as demonstrated by various transactions where the record-keeping regulatory obligation was not met.

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

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)

FINTRAC determined that Houston & Associates Realty Ltd. failed to assess and document the money laundering and terrorist financing risks of its business, taking into consideration the prescribed factors. Further, during the examination, Houston & Associates Realty Ltd. confirmed that it did not have a documented risk assessment, nor did it assess risk in accordance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations.

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

Failure to develop and maintain a written, ongoing compliance training program – Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, paragraphs 156(1)(d) and (e)

FINTRAC determined that Houston & Associates Realty Ltd. did not develop or institute a documented ongoing compliance training program for its employees, agents or mandataries or other persons who are authorized to act on its behalf. Further, Houston & Associates Realty Ltd. did not institute and document a plan for delivering the training.

Violation #3 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 #4

Failure to institute and document the prescribed review – 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)(f)

FINTRAC determined that Houston & Associates Realty Ltd. did not institute and document the prescribed review of its compliance program for the purpose of testing the effectiveness of its policies and procedures, risk assessment and training program, which was confirmed by Houston & Associates Realty Ltd. during the examination.

Violation #4 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 #5

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, paragraphs 58(1)(a)

During the examination, FINTRAC's review of 10 receipt of funds records found that Houston & Associates Realty Ltd. failed to keep prescribed records in all 10 instances, as the account number for each transaction was missing.

Violation #5 is classified by the 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

• News Release: FINTRAC imposes an administrative monetary penalty on Houston & Associates Realty Ltd.