Penalty underscores Ottawa’s tougher stance on AML controls across real estate
A Kitchener‑based RE/MAX brokerage faces fresh scrutiny over anti‑money laundering controls after Canada’s financial intelligence unit imposed a five‑figure penalty tied to risk‑assessment gaps.
RE/MAX Twin City Realty Inc., which also operated as Twin City Realty Inc. and maintained branches across southwestern Ontario, was fined $24,750 on February 4, 2026 for breaching Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Regulators found the firm failed to assess and document the risk of a money‑laundering or terrorist‑financing offence in line with prescribed factors.
The brokerage paid the penalty in full and the case was closed.
“Canada’s Anti‑Money Laundering and Anti‑Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy,” Sarah Paquet, director and chief executive officer of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), said.
“FINTRAC works with businesses to help them understand and comply with their obligations under the Act. We are also firm in ensuring that businesses continue to do their part and we will take appropriate actions when they are needed.”
A growing list of real estate penalties
Twin City was not alone. In the same enforcement cycle, FINTRAC fined London‑based VersaBank $42,075 for failing to maintain up‑to‑date written compliance policies approved by a senior officer. The bank was also cited for not taking special measures for high‑risk clients.
FINTRAC imposed a separate $51,562.50 penalty on Birks Group Inc., a precious metals and stones dealer, for alleged gaps in policies, risk assessment and biennial audits. Birks appealed its penalty, while VersaBank paid.
Previously, FINTRAC imposed a $107,250 penalty on Windsor, Ontario-based real estate brokerage Manor windsor Realty Ltd. It also posted a $148,912.50 penalty against Century 21 Heritage Group Ltd., another Ontario brokerage.
FINTRAC acts as both financial intelligence unit and supervisor, and real estate brokers and sales representatives are within its scope alongside casinos, financial entities, money services businesses and other high‑risk sectors.
These firms are required to keep specific records, identify clients, maintain a compliance regime and report certain transactions, including large cash and virtual‑currency deals, international electronic funds transfers and suspicious transactions.
Suspicious transaction reports, in particular, are described by the agency as critical to its ability to generate “actionable financial intelligence” for law‑enforcement and national‑security agencies.
In its 2024–25 fiscal year, FINTRAC issued 23 notices of violation for a total of more than $25 million in penalties, the highest annual tally since it received penalty authority in 2008.
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