What is it?
When you hire an agent to buy or sell, the agent asks for your ID and fills out a form (often called the "FINTRAC form"). This is identity verification under a federal law, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada, is the federal agency that oversees this law. Banks, mortgage brokers, real estate agents and developers are "reporting entities" under the Act: they must verify who their clients are, keep records and report certain transactions.
It is not about prying into your life or suspecting you personally. Every client, in every deal, goes through the same step.
Why is it required?
Large sums move through real estate, so it can be used to hide money from crime. The law requires an agent who acts for a buyer or seller to verify that person’s identity in the way the regulations set out (section 6.1 of the Act, sections 53 and 101 of the Regulations).
An agent or brokerage that does not comply can face penalties from FINTRAC, such as administrative monetary penalties. That is why an agent cannot lawfully keep working for you if you refuse. The deal may be delayed, or the agent may have to stop acting for you.
When both sides have an agent, each agent verifies only their own client. If one side is self-represented (no agent), the other side’s agent must verify that person too.
When does it happen?
- When the agent starts acting for you: the law requires an information record for every client the agent represents, and the client’s identity must be verified. In practice this is done when you sign the representation agreement or before you write an offer.
- When you pay money: if the agent or brokerage receives funds in any amount (for example, your deposit), the payer’s identity must be verified at that time. FINTRAC’s guidance says "in any amount at the time the transaction takes place".
- When $10,000 or more in cash is received: identity is verified right away and a separate record and report are made.
- When a transaction is suspicious: regardless of the amount, the agent must take reasonable measures to verify identity before reporting.
- If your identity was already verified under the rules and the record was kept, it does not have to be done again, as long as there is no doubt about the information.
Which ID is accepted?
Section 105 of the Regulations sets out several methods. Which one your agent uses depends on the brokerage’s procedures.
| Method | What is used | Notes |
|---|---|---|
| Government-issued photo ID | An ID with your name and photo issued by the federal or a provincial government, or by a foreign government (not a municipal government). Examples: driver’s licence, passport, permanent resident card | The most common method. The original is checked in person or by video |
| Credit file method | A credit file located in Canada that has existed for at least three years, confirming name, address and date of birth | Used when photo ID is not available |
| Dual-process method | Two different reliable sources confirming any two of: name and address, name and date of birth, or that you hold a financial account | The two pieces of information cannot come from the same source |
Any document used must be authentic, valid and current. Expired ID cannot be used. A foreign passport is photo ID issued by a foreign government, so it is normally accepted.
What gets recorded?
- Information record: your name, address, date of birth, and occupation or principal business. FINTRAC asks agents to be specific, for example not just "manager".
- Receipt of funds record: when money such as a deposit is received, the date, the payer’s details, the amount (including any cash portion), how it was received, any account numbers involved and the purpose of the transaction. Under subsection 58(2), the agent who represents the paying party is responsible for this record.
- If you buy through a corporation: a copy of the part of the corporate records that shows who has the power to bind the corporation.
- For corporations and trusts, the agent also checks the beneficial owners and whether a third party is involved (who the purchase is really for).
Cash and suspicious transactions
If an agent receives $10,000 or more in cash in a single transaction, they must report it to FINTRAC and keep a large cash transaction record (sections 54 and 56 of the Regulations). So do not pay your deposit in cash. Use a bank draft or wire transfer; many brokerages refuse cash deposits altogether.
Section 7 of the Act requires a report, whatever the amount, when there are reasonable grounds to suspect a transaction (or attempted transaction) is related to money laundering or terrorist financing. Refusing to show ID, trying to use money with no clear source, or having someone else pay under a different name are the kinds of situations that can raise this.
Where does my information go?
The brokerage keeps the identification records. Under section 148 of the Regulations, records must be kept for at least five years from the day they were created (for information records, from the last transaction). Under section 149, they must be producible to FINTRAC within 30 days if requested.
In an ordinary deal your identity information is not sent to FINTRAC. A report is made only in the cases the law sets out, such as cash of $10,000 or more or a suspicious transaction. Otherwise the record simply stays in the brokerage’s file.
How copies of your ID are stored and who can see them depends on each brokerage’s policies, so ask your agent if you want to know. I keep clients’ identification documents under my brokerage’s rules and do not use them for anything beyond the transaction.
Example
A client buying a North York condo signs a buyer representation agreement with me. On that day I check the original driver’s licence and record the name, address, date of birth and occupation ("dental hygienist"), along with the ID type, number and expiry date.
The offer is accepted and the client pays a $30,000 deposit to the listing brokerage by bank draft. As the agent for the paying party, I create a receipt of funds record with the date, the amount, the account the draft came from and the purpose of the transaction. It is not cash and nothing is suspicious, so there is nothing to report to FINTRAC; the records stay with the brokerage for at least five years.
Pre-construction and foreign buyers
Developers (companies that sell five or more new houses or condo units to the public in a year) are reporting entities under the same law (sections 59 and 102 of the Regulations). That is why a builder’s sales office asks for your ID when you sign.
A buyer without Canadian ID can be verified with photo ID issued by a foreign government, such as a passport. Separately from identification, the federal ban on purchases by non-Canadians and Ontario’s Non-Resident Speculation Tax (NRST) may apply, so read those entries too.
What the law and official sources say
Quotes are copied word for word. The "In plain words" lines are our explanation, not an official translation.
6.1 Every person or entity referred to in section 5 shall verify the identity of a person or entity in accordance with the regulations.In plain wordsEvery reporting entity listed in section 5 (banks, real estate agents and others) must verify a client’s identity in the way the regulations require.
Source: laws-lois.justice.gc.ca/eng/acts/P-24.501/section-6.1.html · checked Oct 30, 2026
53 A real estate broker or sales representative is engaged in a business or profession for the purposes of paragraph 5(j) of the Act when they act as an agent or mandatary for a purchaser or vendor in respect of the purchase or sale of real property or immovables.In plain wordsA real estate agent is covered by the law whenever they act as agent for a buyer or seller in the purchase or sale of property.
Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2002-184/FullText.html · checked Oct 30, 2026
101 (1) A real estate broker or sales representative shall (a) in accordance with section 105, verify the identity of a person who conducts a transaction in respect of which they are required to keep a record under subsection 58(1); … (2) If every party to a transaction is represented by a real estate broker or sales representative, each real estate broker or sales representative is required only to verify the identity of the party or parties that they represent. (3) If one or more but not all of the parties to a transaction are represented by a real estate broker or sales representative, each real estate broker or sales representative shall verify the identity of the party or parties that are not represented.In plain wordsThe agent verifies the people in transactions they must keep records for. If both sides have agents, each verifies only their own client; if one side has no agent, the other agent verifies that person as well.
Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2002-184/FullText.html · checked Oct 30, 2026
105 (1) A person or entity that is required to verify a person’s identity shall do so (a) by referring to an identification document that contains the person’s name and photograph and that is issued by the federal government or a provincial government or by a foreign government that is not a municipal government, and by confirming that the name and photograph are those of the person; … (5) A document that is used by a person or entity to verify identity under subsection (1) must be authentic, valid and current. Other information that is used for that purpose must be valid and current.In plain wordsA name-and-photo ID issued by the federal or a provincial government, or by a foreign (non-municipal) government, can be used. The document must be genuine, valid and not expired.
Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2002-184/FullText.html · checked Oct 30, 2026
58 (1) A real estate broker or sales representative shall keep the following records in connection with an activity referred to in section 53: (a) a receipt of funds record in respect of every amount that they receive, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body; (b) an information record in respect of every person or entity for which they act as an agent or mandatary in respect of the purchase or sale of real property or immovables and any party to the purchase or sale that is not represented by a real estate broker or sales representative; …In plain wordsAn agent must keep a receipt of funds record for every amount received, and an information record for every client they represent (and for any unrepresented party).
Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2002-184/FullText.html · checked Oct 30, 2026
54 A real estate broker or sales representative that receives an amount of $10,000 or more in cash in a single transaction in connection with an activity referred to in section 53 shall report the transaction to the Centre, together with the information set out in Schedule 1, unless the amount is received from a financial entity or public body or from a person who is acting on behalf of a client that is a financial entity or public body.In plain wordsIf an agent receives $10,000 or more in cash in one transaction, they must report it to FINTRAC ("the Centre" in the law). Do not pay a deposit in cash.
Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2002-184/FullText.html · checked Oct 30, 2026
7 Subject to section 10.1, every person or entity referred to in section 5 shall, in accordance with the regulations, report to the Centre every financial transaction that occurs or that is attempted in the course of their activities and in respect of which there are reasonable grounds to suspect that (a) the transaction is related to the commission or the attempted commission of a money laundering offence; (b) the transaction is related to the commission or the attempted commission of a terrorist activity financing offence; or (c) the transaction is related to the commission or the attempted commission of a sanctions evasion offence.In plain wordsAny transaction, even an attempted one, that there are reasonable grounds to suspect is tied to money laundering, terrorist financing or sanctions evasion must be reported to FINTRAC, whatever the amount.
Source: laws-lois.justice.gc.ca/eng/acts/P-24.501/section-7.html · checked Oct 30, 2026
148 (1) A person or entity that is required to keep records under these Regulations shall keep those records for a period of at least five years after … (b) the day on which the last business transaction is conducted, in the case of information records, … (c) the day on which they were created, in the case of all other records.In plain wordsIdentification records must be kept for at least five years: information records from the last transaction, other records (such as receipt of funds records) from the day they were created.
Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2002-184/FullText.html · checked Oct 30, 2026
You must verify the identity of a person from whom you receive funds in any amount at the time the transaction takes place.In plain wordsAn agent must verify the identity of anyone who pays them money, in any amount, when the money is received.
Source: fintrac-canafe.canada.ca/guidance-directives/client-clientele/client/real-eng · checked Oct 30, 2026
Common questions
What if I do not want to show ID?
The law requires the agent to verify every client, so they cannot keep acting for you without it. Refusing can delay the deal or end the representation, and in some situations it can be treated as suspicious. Every client goes through the same step.
Which ID works? Is a foreign passport okay?
Any ID with your name and photo issued by the federal or a provincial government, or by a foreign (non-municipal) government. Driver’s licences, passports and permanent resident cards are common. A foreign passport is photo ID from a foreign government, so it is normally accepted. Expired ID cannot be used.
Does my information go to the government?
Usually not. The brokerage keeps the record for at least five years. A report goes to FINTRAC only in the cases set by law, such as cash of $10,000 or more or a suspicious transaction. If FINTRAC asks, the brokerage must produce the records.
Can I pay my deposit in cash?
Not recommended. Cash of $10,000 or more must be reported to FINTRAC and recorded separately, and many brokerages do not accept cash deposits at all. Use a bank draft or wire transfer.
We are buying as a couple. Do both of us get verified?
Yes. The agent must keep an information record and verify identity for every client they represent. Everyone whose name will be on the agreement should have ID ready.
Does the seller get verified too?
Yes. The listing agent verifies the seller. If a buyer comes without an agent, the listing agent must verify that buyer as well.
Guides that use this term
Sources checked
- Proceeds of Crime (Money Laundering) and Terrorist Financing Act, ss. 5, 6, 6.1, 7, 9 (laws-lois.justice.gc.ca) · checked Oct 30, 2026
- Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, SOR/2002-184 (ss. 53–58, 101, 105, 148, 149) · checked Oct 30, 2026
- FINTRAC, When to verify the identity of persons and entities — real estate · checked Oct 30, 2026
- FINTRAC, Record keeping requirements — real estate · checked Oct 30, 2026
- FINTRAC, Methods to verify the identity of persons and entities · checked Oct 30, 2026