FINTRAC Publishes Video on Mortgage Sector Compliance Requirements

This video is intended for the mortgage sector and provides mortgage sector–specific examples of how to meet compliance requirements. Video length: 15:25 minutes Catalogue number: FD4-53/2026E-MP4 ISBN: 978-0-662-36758-1 Welcome to this information session which provides sector specific scenarios of the compliance requirements for the mortgage sector. If you are a mortgage administrator, broker or lender, you must comply with a number of requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations. Your compliance with these requirements is not just a legal obligation, but also a critical component of protecting the integrity of Canada's financial system. Therefore, these requirements and the processes you follow to meet these requirements should be clearly described in your policies and procedures. This will help ensure that your operations align with these regulatory requirements. You can refer to the compliance program information session for more information about policies and procedures. Text on screen: Mortgage sector Here are a few scenarios to help you understand your obligations. In the first scenario, ABC Mortgage Broker Corporation arranges a mortgage loan for a new client where the loan will be funded by 123 Lending Company. As per their business process, ABC Mortgage Broker Corporation submits the completed mortgage application to 123 Lending Company. What must ABC Mortgage Broker Corporation and 123 Lending Company do to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations? ABC Mortgage Broker Corporation and 123 Lending Company must both do a number of things. If there is a third party or if the client is a politically exposed person or head of an international organization, then ABC Mortgage Broker Corporation and 123 Lending Company will need to obtain additional information and keep records of this information. ABC Mortgage Broker Corporation and 123 Lending Company don't need to create new records if the required information is already included in the mortgage application or other documents they keep. They just need to retain a copy of the mortgage application and related documents with the necessary information. Text on screen: Scenario 1 ABC Mortgage Broker Corporation is arranging a mortgage loan for a new client that will be funded by 123 Lending Company Two cartoon men are on screen, one representing the mortgage broker and one representing the client where the mortgage will be funded by 123 Lending Company. They disappear and the requirements of the transaction appear on screen. To be compliant, they must: In the second scenario, ABC Mortgage Broker Corporation arranges a mortgage loan renewal for an existing client. The initial mortgage loan was funded by 123 Lending Company and the client decides to renew their mortgage with the same lending company. As per their business process, ABC Mortgage Broker Corporation submits the renewal application to 123 Lending Company. What must ABC Mortgage Brokerage Corporation and 123 Lending Company do to comply with the Act and Regulations? ABC Mortgage Broker Corporation and 123 Lending Company must both do a number of things. then it does not have to verify the client's identity again. This is the same for 123 Lending Company. If there is a third party or if the client is a politically exposed person or head of an international organization, then ABC Mortgage Broker Corporation and 123 Lending Company will need to obtain additional information and keep records of this information. ABC Mortgage Broker Corporation and 123 Lending Company don't need to create new records if the required information is already included in the mortgage application or other documents they keep. They just need to retain a copy of the mortgage application and related documents with the necessary information. Text on screen: Scenario 2 ABC Mortgage Broker Corporation arranges a mo