Professional development CASL FINTRAC Canadas antispam legislation Financial

Professional development CASL & FINTRAC Canada’s anti-spam legislation Financial Transactions and Reports Analysis Centre of Canada Prepared by: Arthur Zhao, Broker, ABR, MCNE

Canada’s anti-spam legislation Effect July 1 st, 2014 � CASL applies to emails, text and instant messages, and any similar messages sent to electronic addresses. � CASL does not apply to promotional information you post online in places like blogs or social media. � Express consent received before July 1, 2014, remain valid and does not expire until the recipient withdraws(unsubscribe) it. (36 months to get consent, July 1, 2017)

Canada’s anti-spam legislation Penalty � -Up to $1 Million for individual � -Up to $10 Million for Corporations � -There are no automatic penalties(warnings) � -Hard to predict what will happen until cases appear

Canada’s anti-spam legislation Express Consent • Can be in writing or verbal. • Must Identify: 1. Who is asking for consent 2. What is the purpose of consent 3. The contact information for the person asking for consent 4. A way to withdraw their consent(unsubscribe) If electronic consent is given, your system should have a confirming message. Also you may need a way to store all the electronic consents that you receive, in case you are challenged later.

Canada’s anti-spam legislation Internet Marketing � Anything you put on your own Facebook page, Linked. In account or to Twitter followers is fine- they have already consented. � You cannot post on someone else's way or answer someone with a commercial message if they have not consented. � Drip Marketing is also no good- you need express consent to start -Once you get express consent, you can continue sending � As long as you always give them a way to unsubscribe � Be careful about buying "permission based lists" -No guarantee that proper consent has been given

Canada’s anti-spam legislation Who can you send emails(newsletter) to after July 1, 2014? � Anyone you did a deal with in the past 24 months. � Anyone who made an inquiry at your website within the past six months. � Need to get a new consent before the time period runs out. � Any third party referral as long as: -The person also has a relationship with the recipient(family or they know each other through work, friendship, sharing of interests) -You must identify the person who gave the referral in the message.

Canada’s anti-spam legislation Business Card � If it is someone in a related business, you can send them an email based on implied consent. (Eg. Business card from the property manager) � Not the Same if a private person just gives you’re their card. � Not enough to send same email. � Need express consent -You can do this verbally -Consider asking for consent when they give you their card and making a note on the card later that they agreed, then keep the card as proof.

Canada’s anti-spam legislation For sale by Owner � You can contact an owner selling a property by themselves if you have a Buyer. � What if it say" no agent"? Can you still contact on behalf of your client? � You cannot contact these private Sellers to offer your services as a Salesperson -This will apply to all Kijiji Listings � Offering assistance, information is problematic(Eg, "Here are some staging tips to assist you in selling your home. ") -This could be seen as soliciting a listing, which could generate a complaint � Door knocking is still permitted

Get Prepared with Separate form • I would like to receive emails from ______about properties and listings in my area. I understand that consent can be withdrawn by clicking the unsubscribe link contained in any email. • As a Seller/ Buyer, I do not object to you using information about my property for marketing purposes after the property has sold firm, prior to and/or after closing, unless otherwise instructed in writing, and provided that the Seller or Buyer name is not mentioned. " • Open House Form with Express consent • Schedule B • Questionnaire

FINTRAC Does Fintrac Matter? � Make sure deal get closed!!! � If lenders are suspicious, deals do not close. -Lenders can review a transaction right up to the time of closing -If you are associated with a fraud artist, this will negatively affect your brand image � Main Principle to Remember: -Know your client, when you know your client, not only will you not have a FINTRAC issue, it will lead to successful closings and referrals. -Main Principle for your FINTRAC policies is to reduce risk by acting whenever the transaction is suspicious. NO COMMISSION WILL BE PAID UNLESS ALL FINTRAC DOCUMENTATION COMPLETED

FINTRAC Suspicious Transaction � Cash Deposit � Multiple deposits from different sources � Multiple transfer of same property in short time frame � Assignment agreements � Acting for a third party who is overseas � Intercompany transfers � No identity documents in their possession � How were they referred to you?

FINTRAC Receipt of Funds(OREA 635) � Always completed by buyer salesperson for every deposit � Must be completed for every deposit(including multiple deposits)we receive � Only completed when funds are being held in real estate trust account � Not required if all deposit is submitted to builder or lawyer � Completed for all types of deposit transactions � ID anyone depositing funds

FINTRAC Individual Identification Information Record(OREA 630) � It is recommended that the individual Identification information Record be completed: 1. For a buyer when the offer is submitted and/or a deposit made, and 2. For a seller when the seller accepts the offer.

FINTRAC Individual Identification Information Record(OREA 630) • Occupation must be completed properly • Doctor, lawyer, Teacher are ok • Sales, self/employed, not ok-need business or industry • Cannot use Skype to identify a client who is not in front of you • Need to use a proper Mandatory

FINTRAC Individual Identification Information Record(OREA 630) � Single Process Method: Using a single piece of federal/provincial government-issued photo identification. • Credit File Method: Verifying that the client’s name, date of birth and address match information obtained from a Canadian credit bureau that has been in existence for at least three years. • Dual Process Method: Using two original, valid and current documents or information from independent and reliable sources (such as utility bills or bank statements).

Name and Date of Birth Name and Address Name and Financial Acocunt

FINTRAC Individual Identification Information Record(OREA 630) � Mandatary/Agent(Non Face to Face) -Arrange for Dentist, Medical Doctor, Notary Public, Judge, Lawyer, Accountant, Professional Engineer, Veterinarian to Identify -Identification Mandatory/Agent Agreement-OREA 632 completed by Mandatory and individual or Corporation/Entity forms completed

FINTRAC Individual Identification Information Record(OREA 630) � Unrepresented Parties: -You must make reasonable efforts to ascertain the identity of FSBP's/Mere Postings/Unrepresented Sellers. If they have not already been identified(by another brokerage) -If they refuse to provide documents, note this on identification form and submit with paperwork

FSBO/Mere Posting POA, Law Firm, Trustee, Executor

FINTRAC Power of Attorney � You must make sure that the client has an original POA � See if it has two witnesses � Ask if it was prepared by a lawyer � Call lawyer to see if it is still in force, if that is possible � Mortgage documents cannot be signed by POA in most cases

FINTRAC Estate � � � Ask if there is an original will Has the will been probated? Or How long the probate process is expected to be? (Clause) There may be situation where real estate can be sold without obtaining probate Depends if property was registered in the old Registry System and converted by the government into Land Title Best to check with Family estate lawyer first before giving advice to client

FINTRAC Risk assessment(OREA 639) • FINTRAC released the Risk-based approach workbook for the Real Estate sector, a guide to help brokers and REALTORS® identify risks in the real estate sector as well as ways to implement an effective risk mitigation strategy. • Risk: Refusal to provide or sign, purchases in someone else's name, inflated purchase price, under the table payments, deposit from unrelated 3 rd party, offshore deposit, no home inspection, multiple transaction

FINTRAC Business Relationship • The client has done two transactions with your Brokerage in the past five years • Section D must be completed • The ongoing monitoring is only required if a third transaction occurs • May require ongoing monitoring, if the client is high risk -Only during the course of the transaction, not after • Advantage is that you will always be obtaining updated information

FINTRAC Corporation(OREA 631) • Complete individual Id Form for person signing for corporation, Only section A and B • Individual has authority to bind corporation(articles of incorporation. . ) • Ask Id for anyone hold 25% share of the Corporation

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