Under what circumstances must a mortgage broker report a suspicious transaction involving a large cash deposit to FINTRAC?

Question: Under what circumstances must a mortgage broker report a suspicious transaction involving a large cash deposit to FINTRAC?

Answer options: ✅ When the transaction is for CAD 10,000 or more cash received in a single transaction or multiple transactions within 24 hours from or on behalf of the same client, and there are reasonable grounds to suspect it is related to money laundering or terrorist financing.

• Only when the cash deposit exceeds CAD 25,000, regardless of suspicion.
• When any cash deposit is received, regardless of amount or suspicion, as all cash transactions are suspicious.
• Only when the client explicitly states that the funds are from illegal activities.

Correct answer: When the transaction is for CAD 10,000 or more cash received in a single transaction or multiple transactions within 24 hours from or on behalf of the same client, and there are reasonable grounds to suspect it is related to money laundering or terrorist financing.

Explanation: Mortgage brokers, as financial entities, must report suspicious transactions to FINTRAC when there are reasonable grounds to suspect that a transaction (including cash transactions of CAD 10,000 or more) is related to a money laundering or terrorist financing offence, as per the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).