COMPLIANCE

FINTRAC obligations for mortgage brokers

Mortgage brokers, lenders and administrators became reporting entities on 11 October 2024. Here is what that actually requires, in the order you have to build it.

Since 11 October 2024, mortgage brokers, mortgage lenders and mortgage administrators are reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The obligations are not a lighter version of what banks do — they are the same framework, scaled to the sector.

This page summarises what applies. It is general information, not compliance advice, and FINTRAC's own guidance is the authority.

The six things a compliance program must contain

  • A named compliance officer with the authority to do the job
  • Written policies and procedures, kept current as the business changes
  • A documented risk assessment covering clients, products, geography and delivery channels
  • A written, ongoing training program for anyone dealing with clients or transactions
  • Documented delivery of that training, not just a plan to deliver it
  • A documented effectiveness review, carried out at least every two years

Know your client

Identity verification is the visible part, but it is not the whole obligation. You also need to record the purpose and intended nature of the business relationship, monitor that relationship on an ongoing basis, determine beneficial ownership where an entity is involved, and make a politically exposed person determination.

Beneficial ownership is where mortgage files most often fall short. Where a corporation or trust is the borrower, you need to know who ultimately owns or controls it, take reasonable measures to confirm that information, and record what you did when you could not.

The reports, and when they are due

Suspicious Transaction Report

No dollar threshold. Filed as soon as practicable once you have reasonable grounds to suspect. Attempted transactions count.

Large Cash Transaction Report

$10,000 or more in cash, subject to the 24-hour rule that aggregates related transactions.

Large Virtual Currency Transaction Report

$10,000 or more in virtual currency, with the same 24-hour aggregation rule.

Terrorist Property Report

No threshold. Filed immediately where you know property is owned or controlled by a listed person or entity.

Electronic funds transfer reports do not apply to this sector

EFT reporting obligations attach to financial entities, money services businesses and casinos. A mortgage entity that separately meets the financial entity definition would be caught in that other capacity, but the mortgage sector obligations alone do not include EFTRs.

Penalties

FINTRAC can issue administrative monetary penalties, classified as minor, serious or very serious, and can publish the name of a penalised entity. Amendments increasing the maximum amounts have been legislated, so check FINTRAC's current penalty page rather than relying on figures quoted anywhere else, including here.

In practice the more common exposure is not a headline penalty but an examination finding against a brokerage with a compliance program that exists on paper and nowhere else. The effectiveness review is the part most often skipped.

Common questions

When did FINTRAC obligations start applying to mortgage brokers?
On 11 October 2024, mortgage brokers, lenders and administrators became reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
What must a mortgage brokerage compliance program contain?
Six things: a named compliance officer with real authority, written policies and procedures, a documented risk assessment, an ongoing training program, documented delivery of that training, and an effectiveness review at least every two years.
Do mortgage brokers have to file electronic funds transfer reports?
No. EFT reporting attaches to financial entities, money services businesses and casinos. The mortgage sector obligations do not include EFTRs, although an entity that separately meets the financial entity definition would be caught in that other capacity.

Where to verify this

FINTRAC publishes sector-specific guidance for mortgage brokers, lenders and administrators at fintrac-canafe.canada.ca. Current as of 1 September 2026.

Compliance you do not have to build alone

A.I.M.I. Collective brokers work with a compliance team that answers the phone. If you are carrying this on your own, that is worth a conversation.