Humber/Ontario Real Estate Course 4 Exam Practice

If a client directs an employee to buy a property, who does this employee represent in FINTRAC identification?

1. The client directly

2. The brokerage handling the transaction

3. The employer corporation

4. The provincial licensing body

5. The seller’s interests

6. The mortgage lender

The correct answer is: The employer corporation

The correct answer is that the employee represents the employer corporation in the context of FINTRAC identification. Under the regulations set by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), when an employee acts on behalf of a client to buy a property, the obligations for client identification and verification lie with the brokerage or the employing corporate entity. Thus, while the employee is facilitating the transaction for the client, they are doing so as a representative of their employer corporation, which includes adhering to all identification and reporting duties outlined by FINTRAC. This relationship ensures that the brokerage maintains proper compliance with anti-money laundering regulations and protects both the client’s and the firm's interests.