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Source of money requirements

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

In brief: You must obtain information about the source of money from the client when providing legal services in respect of a “financial transaction”. Record the information with the applicable date. This comes up in Law Society Rules 3-102(1)(a), 3-103(4)(b)ii) and 3-110(1)(a)(ii). The terms “money” and "financial transaction" are widely defined in Rule 3-98. Read the FAQs about source of money.

Key Resources

Rules - Definitions of “financial transaction” and “money”: Law Society Rule 3-98

Rules - Source of money requirements:  Law Society Rule 3-102

Rules - Record keeping and retention:  Law Society Rule 3-107

Practice Resource - Learn more about source of money requirements: Client ID & Verification - Frequently asked questions

Practice Resource - New client verification and source of money requirements, Winter 2019 Benchers’ Bulletin (p.13)

Practice Resource - Client Identification and Verification - Top 10 tips

Additional Reading

Practice Resource - Anti-Money Laundering Webinar 2024 at 2:12

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

Practice Resource - Rule Amendments enhance Law Society’s anti-money laundering measures, Fall 2019 Benchers’ Bulletin (p. 14)

Rules - Exemptions to verification requirements: Law Society Rules 3-99 and 3-101.  

Next Steps

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