As communicated on April 23, significant changes to Canada’s FINTRAC Regime are scheduled to come into force on June 1, 2021.
However, as a result of lobbying by the Canadian Real Estate Association (CREA), FINTRAC has issued a notice stating, from June 1, 2021, to March 31, 2022, FINTRAC will focus on assessing compliance with regulatory requirements that were in effect prior to June 1, 2021. This means although REALTORS® are still required to comply with the new obligations, and should make good faith efforts to do so, the likelihood of an administrative monetary penalty being levied if a deficiency is found with respect to the new obligations is significantly lower.
The notice provides additional flexibility with respect to reporting large virtual currency transactions, which is one of the new obligations commencing on June 1, 2021. REALTORS® who are unable to meet this reporting obligation on June 1, 2021 should:
- Keep records of the reportable transactions as of June 1, 2021.
- Complete the implementation of their brokerage large virtual currency transactions reporting systems as soon as possible and no later than December 1, 2021.
- Submit all the unreported large virtual currency transactions for the period of June 1, 2021 to November 30, 2021, as soon as possible and no later than March 31, 2022.
CREA continues to wait on final FINTRAC feedback to allow us to finalize the materials. As previously communicated, CREA has posted draft versions of its updated materials on REALTOR Link®. The materials are based on the best available information. CREA will post a final sector-specific version of all resources on REALTOR Link® and host a webinar (open to all REALTORS®) explaining the changes, after FINTRAC publishes all relevant guidance and CREA receives FINTRAC’s feedback.
If you have any questions please contact Dil Puar, Director, Government Relations (email@example.com), or Simon Parham, Legal Counsel and Chief Privacy Officer (firstname.lastname@example.org).