Alberta Real Estate Licensing Exam Practice · Question
Sarah, a licensed real estate associate in Calgary, receives a cash offer of $650,000 for a residential property. The buyer insists on paying the entire amount in cash and is reluctant to provide traditional banking information. Under which federal legislation must Sarah take specific steps to verify the buyer's identity and the source of funds?
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), enforced by FINTRAC, requires real estate professionals to identify clients and
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Question: Sarah, a licensed real estate associate in Calgary, receives a cash offer of $650,000 for a residential property. The buyer insists on paying the entire amount in cash and is reluctant to provide traditional banking information. Under which federal legislation must Sarah take specific steps to verify the buyer's identity and the source of funds?
Answer options: ✅ The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
- The Real Estate Act
- The Dower Act
- The Condominium Property Act
Correct answer: The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA)
Explanation: The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), enforced by FINTRAC, requires real estate professionals to identify clients and in some cases, determine the source of funds, particularly in cash transactions, to prevent money laundering and terrorist financing.
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