By Canadian Press

Acceptance of cash deposits rare in real estate, money laundering inquiry hears

Feb 26, 2020 | 11:23 AM

VANCOUVER — The organization representing real estate agents in British Columbia has told a provincial inquiry into money laundering that its members have only ever accepted modest cash deposits in rare circumstances.

A lawyer for the B.C. Real Estate Association says the sector struck a working group in response to two government-commissioned reports last year that found the housing market had become a hotbed for dirty money.

Chris Weafer says the working group recommended that mortgage brokers and others in the real estate industry should only accept funds that are verifiable through Canadian financial institutions.

However, Weafer says an analysis shows that an acceptance of cash deposits in B.C. real estate has never been common practice unless there were extenuating circumstances, and even then amounts were modest.

Kevin Westell, representing the Canadian Bar Association and Criminal Defence Advocacy Society, told the inquiry today that lawyers should not be required to report to the Financial Transactions and Reports Analysis Centre, or Fintrac.

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He says such a requirement would violate crucial solicitor-client privilege, compromise the independence of the bar and add to a “disturbing” trend of the B.C. government undermining the work of lawyers.

This report by The Canadian Press was first published Feb. 26, 2020.

The Canadian Press