As identity fraud is rapidly increasing in every Canadian industry, whether financial or non-financial, it is significant to have a proper identity verification system to mitigate the risk of fraud. Real estate is also a business where people use fraudulent ID documents to purchase property with the intent of money laundering. Millions of dollars are laundered through properties, so real estate companies face a bad business reputation.
The Rising Threat: Real-Life Fraud in 2025
- Recently, a chilling case unfolded in Greater Toronto, where a Canadian couple returned home and found their property had been sold without their knowledge, an organized criminal using fake IDs and slight name misspellings to bypass traditional checks. The fraudsters impersonated the homeowners so convincingly that the title transfer went through legally, leaving the rightful owners with a nightmare scenario, as per the news of the Sun.
- As per the BBC news, a similar incident emerged in Vancouver, the family was out of town, and fraudsters sold their property. A fraudster used fake identities to pose as the owners of a home in the city and then successfully sold the house.
These real-life frauds make KYC verification crucial before the real estate transaction.
Real Estate Industry Attracts Money Launderers:
- In the real estate business, purchasing properties in cash attracts people who don’t want to report suspicious transactions to regulatory authorities.
- People who purchase properties in cash engage in money laundering and buy houses to resell them at a higher cost.
- Money launderers invest their illegal funds into the real estate industry to make it legal and gain a profit from it.
KYC Solutions: A Multi-Layered Defense for Real Estate Companies
To counter growing threats, real estate companies must implement advanced KYC solutions. It assists in various ways, as they are:
Digital Identity Verification:
A robust KYC solution assists with facial recognition, liveness detection, and OCR technology based photo ID scanning that help to authenticate quickly and make it hard for fraudsters to pass forged documents or fake identities during their digital identity verification process.
Background Check:
Identity information collected during the KYC authentication assists in AML and background checks, including name checks with various adverse media databases, PEP, and sanction lists. Knowing whether a person who purchases or sells property is legal and their background for involvement in illegal activities is helpful.
Beneficial Ownership Transparency:
A Land owner transparency registry enhances auditability and cuts through opaque ownership structures.
Risk-Based, Multi-Factor Approach:
KYC solution assists from customer due diligence for low-risk buyers to enhanced due diligence for high-risk or anonymous buyers. It ensures efficiency without compromising security.
How to Choose a KYC Company for Real Estate Businesses?
In the Canadian market, numerous KYC solutions providers provide KYC as a service for real estate companies. But some key considerations assist in choosing the right KYC provider, as they are:
Canadian Regulations Expert:
KYC provider must be well-versed with Canadian laws, KYC, and compliance, keep their KYC API updated to authenticate identities as per regulatory standards. It assists real estate companies to stay compliant, prevent legal proceedings and regulatory penalties for non-compliant.
Advanced Technology:
Artificial intelligence and machine learning algorithm based identity verification solutions verify identities accurately and mitigate the risk of identity fraud. By investing in advanced technology real estate companies can combat money laundering and safeguard their business transactions. So, choose a KYC services provider that has advanced technology.
Multiple Solutions:
Choose a KYC provider that has multiple identity verification solutions. If need an AML solution with a KYC solution in future then do not need to change the KYC partner.
Integration:
The KYC API should be easy to use and can integrate with existing systems.
Scalability:
If the company expands its business, then the KYC API can scale with the growth without any technical issues.
Customer Support:
KYC Company should provide 24*7 customer support to sort out the technical issues if they occur.
How is KYC Canada Helping Real Estate Companies?
KYC Canada is a popular name in the Canadian market for providing advanced identity verification solutions for financial and non-financial industries. They provide KYC solutions for real estate companies and assist in their quick client onboarding process. KYC Canada is thoroughly well-versed with Canadian laws, KYC, and AML compliance. Their KYC API authenticates the identity of the customer as per the regulatory standard and keeps businesses compliant for a smooth operation process.
- Real estate firms can integrate their KYC API easily.
- They also build trust, ensure compliance, and fraud-proof their operations.
- Their KYC API authenticates the identity of the client in seconds.
- Provide 24*7 customer support to resolve the technical issues.
- Provides multiple solutions for ID verification, age verification, document verification, KYC verification, video KYC, Business KYC, PEP, and sanction list verification.
- As a Canadian company, they are a compliance expert.
- Use AI and machine learning algorithm-based technology that accurately verifies every identity detail.
- It has facial recognition, liveness detection features, and OCR identity scanning.
Combat Money Laundering with Advanced KYC for Real Estate:
Advanced technology assists real estate companies in keeping ahead of the curve and combating money laundering. By implementing cutting-edge KYC solutions, you can identify and verify the customer’s identity and secure the sale and purchase of properties in the Canadian market. It mitigates the risk of identity fraud, combats money laundering, and builds trust for new customers. Therefore, choose a trusted and reliable KYC solution provider and safeguard your real estate business from financial fraud. Check the seller’s background before purchasing a property and reduce the risk of fraudulent property selling.
