New Anti-money Laundering Legislation To Impact Real Estate Developers

Jan 29 2009

On February 20, 2009, real estate developers (“Developers”) will become subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “Act”).  Developers will be required to comply with the following record keeping and reporting obligations:

1. keeping a “client identification record” each time they sell a new property;

2. keeping a “receipt of funds record” each time they receive funds from a purchaser (some exceptions apply);

3. reporting the receipt of cash in excess of $10,000; and

4. reporting suspicious transactions where they have reason to suspect that the transaction is related to the commission of money laundering or terrorist financing.

Developers will also be required to implement a compliance regime, including a written compliance policy, a risk assessement and employee training.

Please visit our website at http://www.pushormitchell.com/law-library/article/new-anti-money-laundering-legislation-impact-real-estate-developers-0 for a complete summary of Developers obligations under the Act.

These items are intended for general informational purposes only and should not be construed or relied upon as legal advice. The legal issues addressed in these items are subject to changes in the applicable law. You should always seek legal advice concerning any specific issues affecting you or your business.