FINTRAC

What is it?

Fintrac stands for Financial Transactions and Reports Analysis Centre of Canada. It is the Money Laundering and Terrorist Financing Act.

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What You Need to Know

The Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC, collects, analyzes and discloses financial information and intelligence on suspected money laundering and terrorist financing activities. It was created as part of a Canadian government initiative to fight money laundering and terrorist financing, both domestically and internationally. Businesses and industries who must report to FINTRAC are required to “know their clients” and asking for ID is one way to do that.

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Can I See Some ID Please?

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) requires financial institutions and others covered by the legislation to identify customers who conduct financial transactions such as: depositing funds, purchasing a life insurance policy, buying a money order, or buying or selling property. The Act also requires them to keep records and identify their clients.

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Why Do I Have to show ID Now When I Have Been Already Been A Client?

The Real Estate Brokerage you are dealing with is required by law to ask you for ID and complete the appropriate forms. By providing this information when requested, you will ensure that financial institutions and others can meet their legal obligation, and support the fight against money laundering and terrorist financing.

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What Is Money Laundering?

Money laundering is the process used to disguise the source of money or assets derived from criminal activity. This illegal activity can include drug trafficking, smuggling, fraud, extortion and corruption. Criminals must launder the profits and proceeds from these crimes to be able to enjoy them.

The scope of criminal proceeds is significant—the International Monetary Fund (IMF) estimated that some $500 billion (U.S.) is laundered worldwide each year.

Money laundering occurs worldwide, and the techniques used are numerous and can be very sophisticated. Technological advances in e-commerce, the global diversification of financial markets and new financial products provide further opportunities to launder money and obscure the trail leading back to the underlying crime.

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Terrorist Financing

Terrorist financing operates somewhat differently from money laundering but no less insidiously. While terrorist groups do generate funds from criminal activities such as drug trafficking and arms smuggling, they also frequently obtain revenue through legal means. Supporters of terrorist causes may, for example, raise funds from their local communities by hosting events or membership drives. In addition, some charity or relief organizations may unwittingly become the conduit through which donors contribute funds that may eventually be used to commit a terrorist act. The funds are then routed to the recipient terrorist organizations through both informal networks and the formal financial system.

Terrorist activities constitute threats to our country’s safety and security. An effective response involves, among other things, efforts to detect and curtail the flow of money needed to finance such activities.

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What Type of ID do I Have to Provide?
Under the PCMLTFA, you are required to provide valid identification such as a birth certificate, a driver’s license, or similar type of document.

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What Other Information May I be Asked to Provide?
There are other requirements that might prompt the business you are dealing with to ask you for more information about the transaction you are conducting. For instance, you may be asked whether or not you are actingon behalf of a third party while conducting your transaction. You will have to fill our the appropriate forms to conduct any real estate transaction.

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The New Requirements for Real Estate Transactions

The legislation sets out that effective June 23rd, 2008, when funds are received in any form by a Broker and in any amount, a Receipt of Funds Record must be kept, as well as the identification of the client who provided the funds.

The amendments require that in all transactions, it is the Agent of the Buyer who must complete this record, even in situations when the deposit goes directly into the account of the Listing Broker.
For any purchase or sale of real estate, there must be a client information record.

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Where Can I Get More Information?

To find out more about the PCMLTFA, FINTRAC, and the fight against money laundering and terrorist financing, visit FINTRAC’s Web site at: www.fintrac.gc.ca or call toll-free: 1-866-346-8722.

Allen Mayer

Salesperson

Right at Home Realty Inc. Brokerage

www.allenmayer.com

The Government of Canada today announced adjustments to the rules for government guaranteed mortgages aimed at protecting and strengthening the Canadian housing market. The new measures include:

• Fixing the maximum amortization period for new government-backed mortgages to 35 years;

• Requiring a minimum down payment of five per cent for new government-backed mortgages;

• Establishing a consistent minimum credit score requirement; and

• Introducing new loan documentation standards.

Today’s announcement marks a responsible and measured approach by the Government to ensure Canada’s housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada.

The new limits are planned to take effect October 15, 2008. This would allow existing mortgage pre-approvals with the common 90-day duration to be used or expire. Certain exceptions would also be permitted after October 15. The Government will work closely with all stakeholders to ensure timely and effective implementation of these measures.

As these measures relate only to new, government-backed insured mortgages, Canadians who already hold mortgages will not be affected by this announcement.

The measures announced today will build on the strength of Canada’s housing market. According to the International Monetary Fund, the increase in house prices in Canada is based on sound economic factors such as low interest rates, rising incomes and a growing population. A recent Statistics Canada report concluded that home ownership is at record levels, with over two-thirds of Canadians owning their own home.

Mortgage arrears—overdue mortgage payments—have also remained low. In recent years, the percentage of mortgages in arrears for three months or more continues to be at low levels not seen since 1990.

A backgrounder on today’s measures is attached.

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For further information, media may contact:

June Breaks 1,000,000 Square Foot Barrier

July 11, 2008 -- —In June, TREB Members reported 1,017,518 square feet of space through the TorontoMLS system, Commercial Council Chair Garry Lander announced today.

“This is the second best monthly performance for the year,” said Mr. Lander. “…and it was largely driven by the lease of a number of 100,000 square foot plus Industrial properties in the Vaughan area. One of the changes in the MLS® system over the past several years has been the increasing willingness with which TREB’s Commercial Members have used it to list properties of a significant size.”

On the pricing front, leased Industrial space (all size categories) averaged $5.77 sfn, up three per cent over last June’s figure of $5.63sfn. Commercial space (all size categories) traded for an average of $16.75 sfn, up nine per cent over the same time in 2007.

In June, TREB Members reported 53 sales of IC&I properties, including 23 Industrial buildings in all size categories that sold for $127.36 per square foot. This compares to the $175.47 per sf derived from non-MLS® sources, which saw a number of unusually expensive Industrial
properties transact in the last month.

Members of the Toronto Real Estate Board’s Commercial Division adhere to a strict Code of Ethics and Standards of Business Practice, only those who have met the standards established by their peers are eligible to become Members.

Allen Mayer

Salesperson Vice President

Right at Home Realty Inc. Brokerage

www.allenmayer.com