Canada’s federal financial intelligence agency, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), has imposed administrative monetary penalties totaling $190,971 on two British Columbia-based real estate brokerages for non-compliance with anti-money laundering (AML) regulations. These penalties highlight the ongoing scrutiny of the real estate sector as a vulnerable area for money laundering risks and emphasize the regulatory efforts to ensure compliance under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
Background on FINTRAC and Real Estate Compliance
FINTRAC is Canada’s financial intelligence unit mandated to assist in detecting and deterring money laundering, terrorist activity financing, and other threats to Canada’s financial security. Under the PCMLTFA, real estate brokerages are required to maintain comprehensive and effective compliance regimes, including written policies, risk assessments, training programs, record-keeping, and reporting obligations. Violations of these obligations may attract significant administrative monetary penalties intended to incentivize compliance and deter illicit financial activities through real estate transactions.
Details of the Penalties Imposed
On November 19, 2025, FINTRAC announced the penalties against two B.C. brokerages following compliance examinations uncovering several serious violations. The brokerages fined include:
Pacesetter Marketing Ltd.
- Location: Vancouver, British Columbia
- Penalty Amount: $41,085
- Date of Penalty: June 24, 2025
Pacesetter Marketing Ltd. was found to have deficiencies in documenting its compliance program, specifically in client identification, business-relationship and ongoing monitoring, and beneficial ownership. Its risk assessment process was incomplete, consisting only of a generic template without substantive content. Moreover, the brokerage failed to conduct and document mandatory compliance program reviews at least every two years as required by FINTRAC regulations.
1135233 B.C. Ltd., Operating as LeHomes Realty Premier
- Location: Vancouver, British Columbia
- Penalty Amount: $149,886
- Date of Penalty: May 29, 2025
LeHomes Realty Premier faced the highest penalty, reflecting multiple administrative violations. These included failures to develop and apply tailored written compliance policies approved by senior officers, deficient training programs, inadequate reviews to test program effectiveness, and poor record-keeping practices. This business had also received another significant FINTRAC fine earlier in the year totaling $275,385 for similar AML violations, signaling ongoing compliance challenges.
Common Violations and Regulatory Expectations
Both brokerages were found lacking in key areas crucial for an effective AML compliance regime:
- Written Policies and Procedures: Brokerages must create, maintain, and update detailed compliance policies approved by senior management.
- Risk Assessment: Entities must assess and document the risk of money laundering and terrorist financing, considering prescribed factors specific to their operations.
- Training and Program Reviews: Continuous staff training and documented reviews of the compliance program are mandatory to ensure policy effectiveness.
- Record-Keeping: Brokerages must keep adequate records to trace transactions and identify clients, which is essential for auditability and investigation purposes.
These components are foundational to identifying and mitigating money laundering risks within the real estate sector.
FINTRAC’s Broader Enforcement Activity
The penalties against these B.C. brokerages form part of a broader pattern of heightened enforcement by FINTRAC. In the 2024–2025 period, FINTRAC issued 23 Notices of Violation, marking the largest number of non-compliance notices in a single year, involving fines exceeding $25 million across various business sectors.
FINTRAC has emphasized the importance of the real estate sector’s role in combating money laundering, noting that compliance failures can facilitate complex financial crimes, including terrorist financing and sanctions evasion.
Official Statements
A FINTRAC spokesperson stated:
“Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
This enforcement action underlines the regulator’s commitment to holding real estate brokerages accountable for AML compliance and maintaining the integrity of Canada’s financial system.
Implications for the Real Estate Sector in B.C.
The penalties serve as a strong warning to real estate brokerages in British Columbia and across Canada to enhance their AML programs. The real estate sector continues to be a targeted area for money laundering due to the high value and complexity of transactions. Firms must:
- Regularly review and update compliance policies.
- Conduct robust risk assessments.
- Train staff on AML requirements.
- Maintain comprehensive records and reporting mechanisms.
- Schedule regular compliance program audits.
Failure to meet these standards can result in significant fines and reputational damage, underscoring the critical need for vigilance and adherence to FINTRAC regulations.