Anti-Money Laundering (Client ID)

Client ID and “No Cash” Regulations 

The Society has guidelines and processes (Regulations 4.12 and 4.13) to assist lawyers to ensure that they are not facilitating or otherwise assisting anyone to commit an illegal act, including money laundering and terrorist financing. 

By adhering to these fundamental principles, lawyers help prevent crime and maintain public trust in the justice system.  

The Federation of Law Societies developed these rules and all Canadian jurisdictions have adopted them. Regulation amendments to client identification and verification and the receipt of cash will came into effect on January 1, 2020.

Sample Agent Agreement Instructions

We’ve created a sample Agent Agreement that may assist you in adapting to the Client Identification and Verification Regulations. This sample form is designed for use by lawyers retaining agents to verify the identity of a client, where the client is not in Canada and is not instructing the lawyer in person. 

This particular sample attempts to verify the identity of an individual/client by examining that person’s unexpired passport. Although the regulation does not require the agent to examine more than one piece of identification, depending on the circumstances of the file, you may want an agent to examine several pieces in addition to the passport, such as an unexpired driver’s licence or other government-issued identification. 

Please modify this sample agreement to suit the circumstances of the matter or transaction. 

If your client is signing other documents in the presence of the agent, such as an acknowledgment and direction authorizing you to electronically submit title documents for registration, you may wish to modify this agreement to set out any further instructions to the agent. 

Before retaining the agent, it is prudent to confirm his/her fees for this service, in writing. We also recommend confirming these costs in writing with your client in advance, to minimize the risk of a misunderstanding about fees.  

Client ID Documents & Resources