Alternative Measures for Verification of an Organization

In rare circumstances, you may not be able to obtain the information required to verify an organization or to confirm the accuracy of that information. In these circumstances, Rule 1545(10) offers an alternative. This alternative is only available if you are not able to fulfill the requirements set out in Rule 1545(7) or (8).

If you are not able to obtain the information required to verify an organization or to confirm the accuracy of that information, then you must:

• take reasonable measures to ascertain the identity of the most senior managing officer of the organization,
• determine whether the information you have received from your client in respect of its activities, source of funds, and instructions regarding the financial transaction are consistent with the purpose of your retainer,
• assess whether there is a risk that you might be assisting in or encouraging fraud or other illegal conduct, and
• keep a record, with the applicable date, of the results of your determination and assessment.

Identifying the Senior Managing Officer

Examples of senior managing officers include, but are not limited to:

• in the case of a corporation or other entity, a director, chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary, or an individual who performs any of those functions. It may also include any other individual who reports directly to the entity’s board of directors, chief executive officer or chief operating officer,
• in the case of a partnership, one of the partners, or
• in the case of a trust, the trustee, that is, the person who is authorized to administer or execute on that trust.

To verify the identity of the most senior managing officer, use one of the methods available for verification of an individual: Government-issued documentation, Credit File, or Dual Process.