A buyer, Mr. Dupont, offers to purchase a condo in Sherbrooke for $350,000. He presents a large sum of cash ($40,000) for the down payment to his real estate broker, Ms. Leclerc, stating he inherited it. Ms. Leclerc finds Mr. Dupont's explanation vague and his overall demeanor anxious. What is Ms. Leclerc's responsibility in this situation?

Question: A buyer, Mr. Dupont, offers to purchase a condo in Sherbrooke for $350,000. He presents a large sum of cash ($40,000) for the down payment to his real estate broker, Ms. Leclerc, stating he inherited it. Ms. Leclerc finds Mr. Dupont's explanation vague and his overall demeanor anxious. What is Ms. Leclerc's responsibility in this situation?

Answer options:

• To complete a FINTRAC Large Cash Transaction Report (LCTR) and submit it within 15 calendar days. ✅ To politely decline the cash payment and instruct Mr. Dupont to deposit it into a financial institution and provide a cheque or bank draft.
• To verify Mr. Dupont's identity using acceptable photo identification and proceed with the transaction.
• To accept the cash, obtain a signed receipt from Mr. Dupont, and deposit it into the trust account.

Correct answer: To politely decline the cash payment and instruct Mr. Dupont to deposit it into a financial institution and provide a cheque or bank draft.

Explanation: FINTRAC guidance for real estate brokers primarily focuses on client identification and reporting suspicious transactions. Real estate brokers are not permitted to accept cash payments of $10,000 or more in a single transaction. Instead, they should advise the client to deposit the cash into a bank account and issue a cheque or bank draft. While suspicious transaction reporting might be considered, directly refusing the cash is the immediate and correct action for that specific amount.