6.9 – Client Verification

During your retainer to a client whom you have duly identified, you may engage in, or receive instructions with respect to, the receipt, payment or transfer of funds. If this occurs, you must also comply with the Client Verification Requirements (Rules 1543 to 1545).

The funds do not have to move through your trust account for this requirement to be triggered. The funds may pass directly from one party to another. The key element is that you are giving instructions for the movement of funds (which can include the preparation of legal documents containing such instructions).

You do not have to obtain and record client identity information again if you have already done so. However, if your initial retainer is with respect to receiving, paying, or transferring funds and you have not gathered this information, you must do so.

In addition, you must take reasonable steps to verify the identity of an individual client or an individual who is authorized to provide and give instructions on behalf of an organization. While the Client Identification Rules require you to obtain and record information as to the client’s identity, the Client Verification Rules require you to obtain and retain a copy of all documents which you use in verifying the identity of individuals.

 

The difference between identification and verification is important. If you are conducting identification, you review the identification documents and keep notes of the client’s name, address, telephone number and occupation, but do not photocopy and retain the documents unless you have the client’s consent to do so. If you are conducting verification, you are required to make and keep copies of the documents.