A client remits three separate cash payments of $4,000, $3,000, and $3,500 over a 24-hour period to a mortgage brokerage for a down payment. The total amounts to $10,500. This client has no prior history with the brokerage. What is the brokerage's immediate obligation regarding these transactions?

Question: A client remits three separate cash payments of $4,000, $3,000, and $3,500 over a 24-hour period to a mortgage brokerage for a down payment. The total amounts to $10,500. This client has no prior history with the brokerage. What is the brokerage's immediate obligation regarding these transactions?

Answer options: ✅ The brokerage must submit a Large Cash Transaction Report (LCTR) to FINTRAC because the total cash received exceeds $10,000 within a 24-hour period.

• No report is required unless the client specifically asks for a receipt for all three payments.
• Only the last payment of $3,500 needs to be reported, as it pushes the total over $10,000.
• The brokerage must report it as a suspicious transaction only if there are other red flags, not just based on the amount.

Correct answer: The brokerage must submit a Large Cash Transaction Report (LCTR) to FINTRAC because the total cash received exceeds $10,000 within a 24-hour period.

Explanation: Under the PCMLTFA, financial entities, including mortgage brokerages, must submit a Large Cash Transaction Report (LCTR) to FINTRAC when they receive $10,000 or more in cash in a single transaction or in multiple transactions that total $10,000 or more within a 24-hour period from or on behalf of the same person.