The client verification requirements do not apply when a lawyer:
(a) pays money to or receives money from any of the following acting as principal:
(i) a financial institution”,
(ii) a “public authority”,
(iii) a “reporting issuer”,
(b) receives money paid from the trust account of another lawyer or an interjurisdictional lawyer,
(c) receives money from a peace officer, law enforcement agency or other public official acting in an official capacity,
(d) pays or receives money
(i) pursuant to the order of a court or other tribunal,
(ii) to pay a fine or penalty,
(iii) as a settlement of any legal or administrative proceeding, or
(iv) for professional fees, disbursements, expenses or bail,
(e) provides legal services as in-house counsel on behalf of the lawyer’s employer,
(f) acts as an agent for another lawyer or interjurisdictional lawyer who has confirmed that they have already complied with Rules 3-100 to 3-108 or the equivalent provisions of the governing body of the legal profession in another province or territory of Canada and they have retained the required documentation,
(g) acts for a client who has been referred by another lawyer or an interjurisdictional lawyer who has confirmed that have already complied with Rules 3-100 to 3-108 or the equivalent provisions of the governing body of the legal profession in another province or territory of Canada and they have retained the required documentation
(h) has fulfilled his/her responsibilities through their firm, including fulfillment through members or employees of the lawyer’s firm conducting business in another Canadian jurisdiction,
(i) previously verified the identity and retained the verification documentation for this client, and in the case of an individual, the lawyer recognizes the client
(j) acts for a client that is a financial institution, a public authority, a reporting issuer or an individual who instructs the lawyer on behalf of a financial institution, public authority or a reporting issuer.
(k) was retained by the client in respect of a matter before December 31, 2008 on which the lawyer is still acting and the client has not retained the lawyer in respect of a new matter.
In addition, the verification rules do not apply with respect to a transaction in which all funds involved are transferred by electronic transmission provided all the requirements set out in Rule 3-101 (c) are met. Neither the sender nor the beneficial receiver are permitted to handle or transfer the funds and a full record of the transaction must be kept. The transfer must occur between financial institutions or financial entities headquartered in and operating in countries that are full members of the Financial Action Task Force.
Take note that the exemption from verification for money “paid to another lawyer in trust, on the direction of the client” was deleted from the rules. That exemption no longer exists.