What must a licensed real estate professional do to comply with anti-money laundering regulations?

To comply with anti-money laundering regulations, a licensed real estate professional must report any suspicious transactions to the authorities. This obligation is rooted in the legal framework designed to prevent and combat money laundering activities, which can involve the concealment of illicit funds through real estate transactions.

When professionals identify transactions that appear unusual or inconsistent with a client's known profile or financial behavior, they have a responsibility to report these anomalies. This process often involves filing a Suspicious Activity Report (SAR) with the relevant authorities, such as the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). By doing so, real estate professionals play a critical role in safeguarding the financial system and ensuring that illicit activities are monitored and prosecuted.

Other options, while they may have some merit in the context of a broader compliance strategy, do not specifically fulfill the core requirement of reporting suspicious activities. For instance, conducting background checks and blocking cash transactions can be part of due diligence and policy enforcement, but they do not directly address the legal requirement to report suspicious transactions. Similarly, providing financial advice, while helpful for clients, does not focus on the regulatory obligations related to anti-money laundering efforts.