Client ID & Verification

See also the "Client Identification & Verification" section of the Advice Decision-Making Assistant (ADMA).

Anti-Money Laundering Measures webinar – 2024 update (free of charge)

The Law Society offers a free program to help lawyers comply with the Society’s anti-money laundering rules. The program has been updated for 2024 and is provided by Practice Advisor Barbara Buchanan, KC and Audit Team Leader Tina Kaminski. It includes information on money laundering, cash, client identification and verification, red flags and risk management. The resources referred to in the program are on this web page. The program is eligible for three hours of CPD credit (practice management, professional responsibility and ethics).

(The 2020 program remains available on YouTube for reference purposes.)

A lawyer is obligated to know his or her client, to understand the client’s financial dealings in relation to the retainer, and to manage any risks arising from the professional business relationship with the client. Law Society Rules, Part 3, Division 11, Rules 3-98 to 3-110 require lawyers to follow client identification and verification procedures when retained by a client to provide legal services. There are six main requirements:

  1. Identify the client (Rule 3-100).
  2. Verify the client’s ID if there is a “financial transaction” (Rules 3-102 to 3-106).
  3. Obtain from the client and record, with the applicable date, information about the source of money if there is a “financial transaction” (Rules 3-102(1)(a), 3-103(4)(b)(ii), and 3-110(1)(a)(ii)) effective January 1, 2020).
  4. Maintain and retain records (Rule 3-107).
  5. Withdraw if you know or ought to know that you would be assisting in fraud or other illegal conduct (Rule 3-109).
  6. Monitor the lawyer/client professional business relationship periodically while retained in respect of a “financial transaction” and keep a dated record of the measures taken and information obtained (new Rule 3-110 effective January 1, 2020).

If you have questions regarding the rules, you are welcome to contact a practice advisor (practiceadvice@lsbc.org or 604.443.5797).

Resources

Client Identification, Verification and Source of Money Checklist, current to April 1, 2024; includes Sample Agreement with Agent for Verification (pages A-1-16 to A-1-18)

The Consolidated Canadian Autonomous Sanctions List (includes individuals and entities subject to specific sanctions regulations made under the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act)

Knowing your client - Guidance and rules during COVID-19, Summer 2020 Benchers' Bulletin (pp. 18 -21) – includes the March 17, 2020 Notice to the Profession (client verification in the context of COVID-19)

CLE-TV: Anti-Money Laundering – Client Identification and Verification Rules – one-hour webinar initially provided on November 27, 2019 by Practice Advisor Barbara Buchanan, QC (eligible for one hour of CPD credit)

Discipline advisories:

Federation of Law Societies of Canada: