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Client verification

The following are resources that may be helpful in answering your enquiry. Please familiarize yourself with them before moving on.

In brief: Identification and verification are separate but related concepts. Verification involves obtaining valid, authentic and current documents and valid and current information from independent and reliable sources to confirm that your “client" is who they say they are. Verification is required when there is a "financial transaction", with limited exceptions.  A concomitant obligation to verification is to obtain information about the source of "money" for the "financial transaction".  The words in quotations are broadly defined in Rule 3-98. 

Key Resources

Rules - Key definitions for client verification (include “client”, “financial transaction”, “money”, and “organization”):  Law Society Rule 3-98

Rules - Exemptions to verification requirements: Law Society Rules 3-99(2)(a) and 3-101 and the definitions of “financial institution”, “public body” and “reporting issuer” in Rule 3-98

Rules - When verification is required and methods:  Law Society Rule 3-102

Rules - Additional requirements for organizations: Law Society Rule 3-103

Rules - Using an agent for verification:  Law Society Rule 3-104

Rules - Timing of verification for individuals, including an individual instructing you on an organization’s behalf:  Law Society Rule 3-105

Rules - Timing of verification for organization:  Law Society Rule 3-106

Rules - Criminal activity, duty to withdraw: Law Society Rule 3-109

Code - Dishonesty, fraud by client: BC Code rules 3.2-7 to 3.2-8

Practice Resource - Client Identification and Verification - Top 10 tips

Practice Resource - Client ID & Verification - Frequently asked questions

Practice Resource - Client Identification, Verification and Source of Money Checklist, includes Sample Agreement with Agent for Verification 

Practice Resource - Guidance for virtual verification of your client’s identity using government-issued photo ID and technology.  Note that on March 8, 2024, the Law Society Rules 3-102 and 3-104 were amended so that lawyers may virtually verify an individual client’s identity with reliable authentication technology even if the individual is outside of Canada. 

Practice Resource - New client verification and source of money requirements, Winter 2019 Benchers’ Bulletin (p.13) (Note the changes to Law Society Rules 3-102 and 3-104 made on March 8, 2024 that affect limited parts of this overview) 

Practice Resource - Knowing your client - Guidance and rules during COVID-19, Summer 2020 Benchers' Bulletin (pp. 18 -21) provides an overview of the verification methods. (Note the changes to Law Society Rules 3-102 and 3-104 made on March 8, 2024 that affect parts of this resource.) 

Additional Reading

Practice Resource - Anti-Money Laundering Webinar 2024  at 1:16 and 1:22 in particular

Practice Resource - Red Flags Quick Reference Guide

Practice Resource - Discipline Advisories   Client ID & Verification Securities fraud: Micro-cap stocks, Private lending, Lawyers are gatekeepers 

Practice Resource - Risk Assessment and Compliance (December 2023)

Practice Resource - Client ID & Verfication resources web page 

 

Next Steps

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