Although the red-and-white flag flew proudly from coast to coast to coast on July 1, was this a truly happy birthday for Canada? Are Canadians suffering from a false sense of security?

Each year brings an increasing erosion of individual rights and a worsening of social conditions for many Canadians. Inflation and recession may be words that weren’t heard at July 1 birthday parties, but, driven by record prices for oil, these cold realties are looming on the horizon. Rising prices and faltering growth, mingled with job loss and slowing economies for our trading partners, seem to indicate that the party’s almost over.

Real estate, always at the centre of prosperity, is usually behind most downturns, for instance:

• British Columbia and other lumber-producing provinces have lost their lucrative southern construction markets and are now experiencing layoffs and losses that are difficult for local economies to counterbalance.

• Financial devastation throughout the United States is tightening money belts in Canada.

• In areas with humming natural resource industries like southern Alberta and Saskatchewan, resulting environmental degradation may make this prosperity expensive, in more ways than one, for property owners.

What, particularly in this century, has improved? Improved, not just changed? Recent studies have clearly outed the first nations’ decades-long struggle with inadequate housing and community services, which are well below standards that most Canadians consider a basic right. Homelessness and food banks have become so familiar that they are threatened with invisibility instead of eradication. Water and food safety are in question. Sprawling, car-centric subdivisions are the new communities, and big-box malls, the new "downtown." Are these improvements?

The rights of individual remain under attack. As of June 23, 2008, the latest amendments to Canada’s anti-money laundering legislation place additional responsibilities and liabilities on professionals and companies in real estate and other financial service sectors, adding new complexity to their relationships with the public.

"It is very ironic, in a day and age when we see numerous ads about protecting your personal information, and not sharing it, that you have this type of legislation that comes in force," said Ottawa-based lawyer Patrick Veilleux of McCarthy Tétrault LLB, an anti-money laundering specialist.

The new regulations and amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, S.C. 2000 have broadened and heightened reporting obligations and compliance issues. The overseeing body is The Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC, Canada's financial intelligence unit. This specialized agency was created "to collect, analyze and disclose financial information and intelligence on suspected money laundering and terrorist activities financing."

As a result, real estate transactions lose significant aspects of privacy. Confidential third-party transactions may be difficult if not impossible. The overlap between these obligations and privacy regulations under PIPEDA may be challenging for brokerages.

"It used to be that real estate agents and brokers only reported and kept client identification on file for specific transactions, for example, C$10,000 in cash or more," said Veilleux. "Going forward, for every real estate transaction in Canada, brokers must identify clients and keep a photocopy of their driver’s license or passport, for five years for every transaction. As Canadians, if you want to sell or purchase real estate, you must provide documents that say ‘I am who I say I am’ and that are kept on file by the brokerage."

Clients may not enjoy this apparent invasion of privacy. Brokers and salespeople face the added concern that requiring detailed personal information may anger prospects and clients and could interfere with trading in real estate.

Is the "big brother" solution bigger than the problem? Worldwide projections, according to the International Monetary Fund, set the annual money laundering total at US$500 billion. In this post-911 era, detecting and disrupting terrorist financing is a significant goal.

These new federal requirements affect everyone. In the middle of high-stress real estate transactions, brokers and salespeople must add a new function to their roles or face significant consequences.

Now, does sound like a party for anyone concerned?

Published: July 1, 2008

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Strategist and Futurist is The Catalyst -- intent on "Helping The Best Get Better." An internationally-recognized "new retirement" authority, PJ's research, writing and speaking programs focus on decisions Baby Boomers face to achieve a successful future. Author of 6 books, PJ knows that, since home is headquarters for the "new retirement," professionals and consumers need relevant knowledge and insights, along with solid decision-making skills, to protect and enhance this private oasis. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more, visit TheCatalyst.com.