FINTRAC (Financial Transactions Reports Analysis Centre) has advised that financial institutions are required to have an adequate employment description for all borrowers, particularly self employed and retired persons. “Self-employed” is not an adequate employment description unless it is accompanied by further information (e.g. IT Security Consultant, Owner – Landscaping Company, etc). In addition, FINTRAC has now stated that “Retired” is no longer an adequate description. It has requested that a former career must be identified when using “Retired” as an employment type (e.g. Retired – It Security Consultant). 

Effective immediately, please ensure that all applications adequately describe the current nature of the business for a self-employed individual or the former career for retired persons. The information may be included in the employment information area of the mortgage application or in the notes section.