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Entries posted September 2020

Money laundering and bidding wars, is there a link?

Since early July we have experienced again a rise in prices and in demand in Real Estate. Buyer’s are very strong in their willingness to Buy. Sellers are worried to be trapped in the unknown on what will be coming next with the COVID and are anxious to put their home on the market. We are, as Real Estate Professionals, experiencing with clients bidding wars on the Seller side and on the Buyer side too. I recently experienced 26 offers on the same place! This could lead some clients to buy in an out of the market price value. And in this case, it was $250,000 over asking! Obviously, there are many reasons for that, but one of them might very well be money laundering! In the Toronto Sun of June 11, 2020, we are informed that the feds have introduced new regulations requiring Canadian realtors to name suspicious clients, according to Blacklock’s Reporter. Amendments under the Proceeds of Crime And Terrorist Financing Act target transactions of $100,000, and over, saying in those cases realtors will be required to “determine and verify” names and addresses of clients or “beneficial owners.” As a note, Realtors are already required to do so. The only method that is working world wide is “Know you client” or getting to know them. ” The report called Canada a “la la land for financial crime.” The new regulations will be coming into effect June 1, 2021. In my opinion, one of the best ways to protect Canada and Canadians from Money Laundering is to have only full-time professionals in my industry. It is a full-time commitment to ensure that every transaction is done in the most professional manner. Bully offers coming from unexperienced Realtors with clients they just met, is not exceptional. Experienced money laundry actors know how to play with the system.

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