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Entity Requirements for Fintrac

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Effective June 1, 2021

There are new regulatory requirements for the Ontario Real Estate sector pertaining to the information they must obtain with respect to FINTRAC. This may impact your Law Firm!

A Real Estate Brokerage, Sales Representative or Real Estate Developer, in Ontario, who is acting as an agent or mandatary for purchasers or vendors in respect of the purchase or sale of real property is required to verify the identity of all persons and business entities.

How are they required to confirm Business Entities?

  • For Corporations: they must provide the names of all directors of the corporation and the names and addresses of all persons who own, directly or indirectly, 25% of the shares of the corporation

     

  • For widely held/publicly traded Trust: they must provide the names of all trustees of the trust and the names and addresses of all persons who own or control, directly or indirectly, 25% or more of the units of the trust

     

  • For Trusts: they must provide names and addresses of all trustees and all know beneficiaries and settlors of the trust

     

  • For Entities other than Corporations/Trusts: they must provide names and addresses of all persons who own or control, directly or indirectly, 25% or more of the entity

*If a separate corporation, trust or other entity is a holder of 25% or more, the directors and shareholders of 25% or more of those entities must also be obtained.

 

IN ALL CASES they must obtain information establishing the ownership, control and structure of the entity and will be required to take reasonable measures to confirm the accuracy of the information & keep records on how this was done. You may be called upon to provide this information.

 

Progressive, yet Anchored

As partners with Law Firms for over 30 years, you can still depend on us to provide the lowest price in the industry for Corporate Supplies & Search fees, together with timely and efficient service.

 
McHines Corporate Services