CWB Financial Group is subject to the legislative requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. One of the regulatory obligations is to provide training to employees, agents or other individuals who will be involved with our business activities and transactions. Therefore this mandate requires us to provide a certain level of training commensurate with your role as mortgage broker. 

Mortgage fraud and money laundering continues to be a concern for lenders and regulatory agencies. All participants in the application process must take steps to ensure they're doing their utmost to ensure their file is fraud free. As a broker, there are unique steps you can take to prevent fraud in your deals. In the presentation, you will learn tips and tricks for recognizing fraud and the red flags of fraud.

Our expectation is that you have conducted due diligence and satisfied yourself with both the affordability of the deal and its legitimacy before submitting it to us (or any lender for that matter). We have a zero tolerance policy for fraud, and will continue to exercise our due diligence and hold brokers accountable. We will terminate our relationship with any broker we determine to have presented fraudulent documents to us.

What is mortgage fraud?

Mortgage fraud occurs when someone deliberately misrepresents information to obtain mortgage financing that would not have been granted if the truth had been known.

Money laundering risk

Money laundering transactions can be easily camouflaged in genuine commercial transactions among different types of loan transaction(s) that a financial institution offers. Types of loan(s) such as business loans, commercial and residential real estate loans, personal loans, trade based financing and credit card advances are preferred methods for criminals to launder the proceeds of crime and tax fraud.

What are the consequences?

Borrowers who misrepresent information and straw buyers who allow a property to be purchased in their name are committing mortgage fraud and will be liable for any financial shortfall in the event of default. They may also be held criminally responsible for their misrepresentation.

How can I learn more about fraud and anti-money laundering?

We've made this part easy for you, we've cut through all the legal wording and put a quick five minute presentation together for your review. If you have any questions or concerns, please reach out to your BDM. They are fully trained on our underwriting guidelines and are a resource to you for any questions you may have.

Click here to view the presentation

 

For additional fraud avoidance tips visit CMHC and Mortgage Professionals Canada