The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has announced five administrative monetary penalties (AMPs) against real estate brokerages in Calgary, Vancouver, Toronto/Richmond Hill and Brossard for breaches of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
The penalties total C$368,181, with the largest dished out to LeHomes Realty Premier in Vancouver at C$149,886, followed by Houston & Associates Realty Ltd. in Calgary at C$117,975.
Pacesetter Marketing Ltd. in Vancouver, HomeLife New World Realty Inc. in Toronto and Les Immeubles Star/Star Realty in Brossard received smaller penalties ranging from C$23,100 to C$41,085.
In its 2024–25 annual report, FINTRAC highlighted a broader enforcement ramp-up and pointed to real estate brokers and developers as being among the sectors under closer scrutiny; an analysis by accounting firm MNP notes that real estate brokerages have become one of FINTRAC’s most frequently penalized sectors.
STR breach
Across the five firms, FINTRAC’s notices point to weak spots in the core AML program: written policies and procedures, risk assessment, training, and review of the compliance regime.
LeHomes drew the most serious findings. Examiners said the brokerage failed to file at least one suspicious transaction report (STR) despite multiple red flags that should have given rise to reasonable grounds to suspect money laundering.
FINTRAC labelled this a “Very Serious” breach and tied it to broader program deficiencies, including incomplete policies, poor risk assessment and training, and missing client identification records.
The other four firms showed many of the same structural AML weaknesses, with FINTRAC citing:
- incomplete or outdated policies and procedures;
- risk assessments that did not properly consider products, services, delivery channels, geography, and client base;
- missing or undocumented biennial reviews;
- basic recordkeeping gaps, such as missing account numbers on receipt-of-funds records or incomplete client details such as occupation and address.
At Star Realty, FINTRAC also flagged shortfalls in areas that have been moving up the federal AML agenda: beneficial ownership, ministerial directives and transaction restrictions, politically exposed persons and heads of international organizations, and terrorist property reporting.
According to FINTRAC’s public notices, LeHomes, Pacesetter and HomeLife have accepted their penalties and closed their files. Houston & Associates and Star Realty have appealed their AMPs to the Federal Court.
