During a routine audit, it is discovered that a strata manager, Emily, failed to report a suspicious transaction involving a large cash payment for strata fees from an owner in Strata Plan VIS3344 in Victoria, as required by FINTRAC. What is the potential consequence for Emily?

Question: During a routine audit, it is discovered that a strata manager, Emily, failed to report a suspicious transaction involving a large cash payment for strata fees from an owner in Strata Plan VIS3344 in Victoria, as required by FINTRAC. What is the potential consequence for Emily?

Answer options: ✅ Monetary penalties and potential suspension of her real estate license.

• A formal warning from her managing broker and mandatory retraining.
• Increased scrutiny on all future transactions, but no immediate penalty.
• Only the strata corporation is held responsible for anti-money laundering compliance, not the individual manager.

Correct answer: Monetary penalties and potential suspension of her real estate license.

Explanation: The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), enforced by FINTRAC, imposes obligations on reporting entities, which can include strata managers in certain circumstances. Failure to report suspicious transactions can lead to significant monetary penalties and, as a licensed professional, actions against her license by BCFSA Real Estate Services Rules.