New Rules Ahead for Mortgage Brokers Following BC Money Laundering Investigation – North Delta Reporter

Finance Minister Selina Robinson speaks during a press conference at Goudy Field in Langford, British Columbia, Wednesday, September 7, 2022. The British Columbia government is proposing new laws to replace the law outdated on mortgage brokers, which follows the recommendations of a money laundering investigation. THE CANADIAN PRESS/Chad Hipolito

New rules to come for mortgage brokers following BC money laundering investigation

The BC Financial Services Authority will soon be able to set rules for brokers

The BC government is proposing new laws to replace the outdated Mortgage Brokers Act, which follows recommendations from a money laundering inquiry.

Finance Minister Selina Robinson introduced the bill in the Legislative Assembly on Tuesday, saying BC residents deserve better consumer protection and more transparency in the mortgage brokerage industry.

The government says in a statement that the law will give the BC Financial Services Authority the ability to set rules for the industry as alternative lenders emerge and more people turn to brokers and online technology for arranging residential mortgages.

He says the law will provide a framework to address the issues highlighted by the Cullen Commission of Inquiry into Money Laundering which concluded in May, aimed at curbing the problem in the real estate sector.

A pending change increases fines to a maximum of $500,000 for those who break the rules, while those with more than one conviction could face fines of up to $2.5 million.

The statement estimates that the new rules could be introduced no earlier than the end of 2023.

The Canadian Press

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