Calgary's Houston & Associates Realty Ltd: FINTRAC Imposes $117,975 Penalty

• FINTRAC imposed an administrative monetary penalty on Houston & Associates Realty Ltd. for non-compliance with anti-money laundering regulations. The company appealed, and the case was resolved with a payment of $63,987.50.
• The company committed five violations, including failures in compliance policies, risk assessment, training, program review, and record-keeping.
• This penalty serves as a reminder to all real estate brokerages in Canada of their obligations under anti-money laundering regulations.
• Lawyers advising real estate brokerages must ensure their clients are taking necessary steps to comply with these regulations.

FINTRAC imposed an administrative monetary penalty of $117,975 on Houston & Associates Realty Ltd. for committing five violations; after an appeal, the case was resolved with a payment of $63,987.50.

FINTRAC has taken action against Houston & Associates Realty Ltd., a real estate brokerage in Calgary, Alberta. The agency imposed an administrative monetary penalty of $117,975 on the company for committing five violations. Houston & Associates Realty Ltd. appealed this decision to the Federal Court. On February 28, 2026, the appeal was resolved, and the company paid $63,987.50. The case is now closed. The infractions included: failure to develop and apply written compliance policies and procedures; failure to assess and document the risk of a money laundering or terrorist activity financing offence; failure to develop and maintain a written, ongoing compliance training program; failure to institute and document the prescribed review of its compliance program; and failure to keep prescribed records. The penalty serves as a reminder to all real estate brokerages in Canada of their obligations under anti-money laundering regulations.

FINTRAC's authority to impose administrative monetary penalties stems from its mandate to regulate and oversee compliance with Canadian anti-money laundering regulations. These regulations are designed to prevent the use of real estate transactions for illicit activities, such as money laundering. Real estate brokerages in Canada must adhere to these rules to avoid penalties like the one imposed on Houston & Associates Realty Ltd. Canada's anti-money laundering and anti-terrorist financing regime continues to evolve, with recent amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated regulations coming into effect in late 2025 and early 2026.

This penalty serves as a warning to lawyers advising real estate brokerages in Canada to ensure their clients are taking necessary steps to comply with anti-money laundering regulations. Non-compliance can result in significant financial penalties, as seen in this case. Real estate brokerages must implement robust measures to prevent money laundering and other illicit activities, including training staff on compliance procedures and reporting suspicious transactions.

Lawyers advising real estate brokerages in Canada should be aware of the $117,975 penalty imposed by FINTRAC for non-compliance with anti-money laundering regulations, and ensure their clients are taking necessary steps to avoid similar penalties.

Source: Original reporting via FINTRAC news release