Compliance Ninjas: Uncovering Hidden Risks in Real Estate

Know Your Compliance (KYC)

Greg is joined by Rodney MacInnes, a compliance expert with over 17 years of experience in the money services and real estate industries, as they discuss the challenges of risk management and anti-money laundering (AML) compliance in the real estate sector. Rodney shares a compelling story about identifying potential mortgage fraud through discrepancies in bank statements, and provides insights into building effective AML policies and procedures.

Key Takeaways:

• The real estate industry struggles with risk management due to a lack of guidance and information from regulators like FINTRAC. Operational briefs from FINTRAC will be crucial in helping the industry understand the risks and indicators to look for.
• Detecting money laundering in real estate transactions is particularly challenging, as the real estate sector is often the final stage of he money laundering process, making it harder to trace the criminal origins of the funds.
• Proactive compliance measures, such as investigating discrepancies in client documentation, can uncover hidden risks like mortgage fraud. Rodney's story demonstrates the importance of thinking creatively about potential risks.
• AML policies and procedures should focus not only on external risks, but also on internal risks within the organization, such as inconsistent reporting of suspicious transactions by staff members.
• Ongoing staff training and monitoring are essential to ensure compliance, as industry incentives to complete transactions can lead to complacency and overlooking red flags.

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