Humber/Ontario Real Estate Course 2 Exam Practice

To qualify as a suspicious transaction under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, what must a real estate salesperson or broker do?

1. A terrorist group must be involved with the transaction.

2. Acknowledge the presence of a large sum of cash.

3. Analyze various factors and establish that reasonable grounds exist for suspicion.

4. Ensure the sum of money involved is $10,000 or more.

5. File a report directly to the authorities without further analysis.

6. Monitor client interactions and activities over an extended period.

The correct answer is: Analyze various factors and establish that reasonable grounds exist for suspicion.

To qualify as a suspicious transaction under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, a real estate salesperson or broker must analyze various factors and establish that reasonable grounds exist for suspicion. This means that they need to look at the transaction holistically, considering different elements such as the source of funds, the nature of the transaction, and any unusual conduct by the parties involved. By diligently analyzing these factors and determining that there are reasonable grounds for suspicion, the real estate salesperson or broker can then proceed to report the transaction as suspicious as required by law. The other options are not correct because: A. Involvement of a terrorist group is not a requirement for a transaction to be deemed suspicious under the Act. B. Acknowledging the presence of a large sum of cash is not enough to qualify a transaction as suspicious; further analysis and reasonable grounds for suspicion are necessary. D. There is no specific threshold of $10,000 or more mentioned in the Act for a transaction to be considered suspicious. E. Filing a report directly to the authorities without conducting proper analysis and establishing reasonable grounds for suspicion may lead to unnecessary reporting and does not align with the required process. F. Monitoring client interactions and activities over an extended period, while important for due diligence and compliance, is not the sole indicator of a suspicious transaction under the Act.