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Mortgage Agent Licensing Practice Exam · Question

As per FINTRAC regulations, when must a mortgage agent identify a client and verify their identity?

FINTRAC PCMLTFA regulations mandate that a mortgage agent must identify every person and confirm their identity before engaging in a business relationship or co

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Question: As per FINTRAC regulations, when must a mortgage agent identify a client and verify their identity?

Answer options: ✅ Before entering into a business relationship or carrying out a financial transaction for which there are reporting obligations.

  • After the mortgage commitment is issued but before funding occurs.
  • Only when the client is applying for a high-ratio insured mortgage.
  • Only if the mortgage amount exceeds $500,000.

Correct answer: Before entering into a business relationship or carrying out a financial transaction for which there are reporting obligations.

Explanation: FINTRAC PCMLTFA regulations mandate that a mortgage agent must identify every person and confirm their identity before engaging in a business relationship or conducting certain transactions, to prevent money laundering and terrorist financing.

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