Question

17 elvin is an insurance agent advising his new client, sam on transferring his rrsp account to a segregated fund. when asked for his identification and social insurance number (sin), sam says he does not have his identification with him, and that he does not remember his sin. however, he agrees to provide his sin over the phone. he does provide the necessary details of the account from which the funds are to be transferred. should elvin report this as a suspicious transaction to the financial transactions and reports analysis centre of canada (fintrac)?
a. elvin should report because the transaction is suspicious.
b. elvin should not report because the client is a canadian citizen.
c. elvin should report because the amount is being transferred from another account.
d. elvin should not report because the client is purchasing a registered product.

Explanation:

To determine the answer, we analyze each option:

• Option a: The client can't provide ID and wants to give SIN over the phone, which is suspicious behavior (e.g., potential identity - related issues in financial transactions). Fintrac requires reporting suspicious transactions.
• Option b: Being a Canadian citizen is not a reason to not report a suspicious transaction.
• Option c: Transferring from another account alone isn't a reason for suspicion; the suspicious part is the ID and SIN handling.
• Option d: Purchasing a registered product doesn't exempt from reporting suspicious behavior related to ID/SIN handling.

Answer:

a. Elvin should report because the transaction is suspicious.