Sarah is a mortgage broker in Edmonton. She suspects a client, who has provided a large wire transfer as a down payment for a property, may be involved in money laundering. She has gathered information but is unsure if it meets the threshold for reporting. What is Sarah's obligation under FINTRAC regulations?

Question: Sarah is a mortgage broker in Edmonton. She suspects a client, who has provided a large wire transfer as a down payment for a property, may be involved in money laundering. She has gathered information but is unsure if it meets the threshold for reporting. What is Sarah's obligation under FINTRAC regulations?

Answer options: ✅ To submit a Suspicious Transaction Report to FINTRAC, providing details of her suspicion and the client's information.

• To immediately refuse the transaction and terminate her relationship with the client.
• To inform the client that she suspects money laundering and advise them to seek legal counsel.
• To only report if the transaction involves an amount over $10,000 CAD and is cash-based.

Correct answer: To submit a Suspicious Transaction Report to FINTRAC, providing details of her suspicion and the client's information.

Explanation: Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and FINTRAC guidelines, mortgage brokers must submit a Suspicious Transaction Report (STR) whenever there are reasonable grounds to suspect money laundering or terrorist financing.