Yes! You can use AI to fill out Form 635, Receipt of Funds Record

Users often enter a partial property address, omitting the unit number, postal code, or even the city. This typically happens when rushing or assuming a street name is sufficient for identification. An incomplete address can lead to ambiguity in record-keeping and create compliance issues, as it fails to uniquely identify the transaction for regulatory bodies like FINTRAC. To avoid this, always enter the complete address as it appears on the official Agreement of Purchase and Sale.

A frequent error is filling out Section D with the buyer's information when the funds were provided by a third party, such as a parent or a corporation. This occurs because the agent focuses on their client rather than the actual source of the money. This misrepresentation is a serious compliance failure, as the form's purpose is to track the origin of funds. Always identify and record the details of the person or entity whose account the funds came from, not necessarily the person buying the property.

Many filers leave Section C.2 (Account-Related Information) blank, especially when funds are received via cheque or bank draft. This happens due to a misunderstanding of what constitutes an 'affected account'. The consequence is an incomplete record, as FINTRAC requires information on the account from which funds are drawn. To prevent this, if you receive a cheque or bank draft, you must record the account number, holder name, and account type from the instrument in Section C.2.

In Section D.1.1, agents sometimes record information from a driver's license or passport without checking the expiry date. This mistake renders the entire identification process invalid according to anti-money laundering regulations, creating a significant compliance risk for the brokerage. Before recording the ID details, always verify that the document is current and has not expired, as explicitly required by the form's instructions.

When filling out the 'Nature of Principal Business or Occupation' field, people often use generic terms like 'Business Owner', 'Self-Employed', or 'Consultant'. Regulators consider these terms insufficient for assessing risk profiles. This can trigger further inquiries during an audit. To avoid this, provide a more descriptive occupation, such as 'Owner of a retail clothing store' or 'IT Security Consultant for financial institutions'.

Users may incorrectly select checkboxes that contradict each other, such as marking the 'Type of funds' as 'e-transfer' but the 'Method of receipt' as 'in person'. This confusion arises from not distinguishing between the financial instrument and its delivery method. Such inconsistencies undermine the credibility of the record and can be flagged as suspicious. Ensure the 'Type' (e.g., Cheque, Wire) and 'Method' (e.g., Mail, Electronically) logically correspond to how the funds were handled.

When funds are received in a currency other than Canadian dollars (CAD), filers often forget to complete the mandatory 'For Funds not in CAD' section. They may mentally convert the amount but fail to document the exchange rate and its source on the form. This is a direct violation of FINTRAC requirements and results in an incomplete and non-compliant record. If funds are not in CAD, you must record the exchange rate used on the date of receipt and the source of that rate (e.g., 'Bank of Canada daily rate').

The Dual ID method in Section D.1.3 is complex and often completed incorrectly. Common errors include using two sources that are not independent (e.g., two statements from the same bank) or failing to check two of the three required boxes. This invalidates the client identification process. To comply, you must refer to information from two separate, reliable sources (like a government-issued T4 slip and a utility bill) and tick the two corresponding checkboxes.

When a corporation provides funds (Section D.2), agents often fail to attach the required documents proving the individual's authority to act on the corporation's behalf. They might view the documents but forget to make and keep a copy with the record, and neglect to check the 'Check this box when attached' field. This creates a major gap in the audit trail. Always obtain and attach a copy of the articles of incorporation or similar document and check the box to confirm it's in the file.

Since this form is often a non-fillable PDF, it is frequently printed and completed by hand, leading to illegible entries. Rushed or poor handwriting can make critical information like names, dates, and account numbers impossible to read accurately. This can cause data entry errors in the brokerage's systems and may lead auditors to deem the record insufficient. To prevent this, it is best to use a fillable version of the form. AI-powered tools like Instafill.ai can convert non-fillable PDFs into fillable versions, ensuring all entries are clear, legible, and correctly formatted.