On October 11, FINTRAC issued new requirements to those in the mortgage sector around Anti-Money Laundering (AML) and the Terrorist Financing Act (TFA). These new requirements apply to mortgage brokers, mortgage administrators and mortgage lenders, who are expected to comply with the following requirements:
- Implement a compliance program
- Customer Due Diligence – Know your Client
- Reporting Obligations
- Detailed Record Keeping
- Apply Ministerial directives related to AML and ATF
With the implementation of these new requirements, those in the mortgage sector have been altering their business practices to ensure that they are meeting the necessary requirements.
PurView Ambassador, Sadiq Boodoo of Approved Financial, shared his thoughts on these new obligations and how he suggests that brokers and brokerages can ensure that they remain compliant.
“I would highly recommend that mortgage brokers and brokerage owners ensure that their compliance program addresses all of the requirements from FINTRAC. While some courses and webinars available address the requirements of customer identification and validation, there needs to be training specific to the brokerage’s processes and operations based on their risk assessment and tolerances.
Brokers also need to ensure that they are following the policies and procedures set by their brokerage and have detailed documentation and recordkeeping to be successful should they get audited.”
How can PurView help you meet these requirements?
As a frequent PurView user, Sadiq knows that PurView is an essential tool to support maintaining records, identifying fraud, and verifying your clients. PurView can be used as an additional resource to assist brokers in meeting FINTRAC’s Anti-Money Laundering requirements.
“PurView can be utilized as a source of verification of a customer, especially under the dual-source method as the report can be used to verify the client(s) name and address. Additional data points can be used for further due diligence such as confirming details of the previous purchase (purchase date, purchase price, current mortgage amount, current lender) with information provided by the client.”
With access to your PurView Property Reports and other registered documents, including Parcel Registers and Provincial Land Registry Documents, you can keep records of the subject properties you have worked with. This will help brokers in keeping records of any properties for possible FINTRAC reporting.
Many brokers are familiar with leveraging PurView as a due diligence tool. Paired with Title Search or Provincial Land Registry Documents, these resources can offer insight into clients and help validate ownership information. PurView can help you ensure that a client is providing accurate information, and they are who they say they are. Any discrepancies in the information you access through PurView may indicate a red flag, which would support brokers in ensuring they are meeting the FINTRAC requirements.
To learn more about the FINTRAC and new AML requirements, please click here.
To learn more about how PurView and Land Registry Data can play a crucial role in mitigating fraud, consider registering for our online webinar, Land Registry Data as a Fraud Mitigation Tool, hosted by Teranet’s Senior Director of Government Relations, Eric Black.
