What must a licensee do if a suspicious attempted transaction occurs?

The requirement for a licensee in the event of a suspicious attempted transaction is to file a report with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) once an offer is made. This is in accordance with the obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which mandates that real estate professionals report suspicious activities that could be indicative of money laundering or terrorist financing.

By notifying FINTRAC, the licensee ensures compliance with national regulations aimed at preventing financial crimes. The act of reporting at the moment an offer is made allows for timely identification and investigation of potentially illicit activities, promoting a more secure and lawful market environment.

Other options might suggest disconnecting from the transaction or reporting to police immediately, but the protocol established by FINTRAC specifically calls for reporting to their organization first. This ensures that all suspicious activities are documented correctly and handled by the appropriate financial oversight authorities, rather than prematurely notifying clients or law enforcement without following established protocols.