Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

105 (1) A person or entity that is required to verify a person’s identity shall do so

• (a) by referring to an identification document that contains the person’s name and photograph and that is issued by the federal government or a provincial government or by a foreign government that is not a municipal government, and by confirming that the name and photograph are those of the person;

• (b) by referring to information concerning the person that the person or entity that is verifying their identity receives, on request, from a federal or provincial government body — or an agent or mandatary of that body — that is authorized in Canada to verify the identity of persons, and by confirming that either the name and address or the name and date of birth included in the information are those of the person;

• (c) by referring to information that is in the person’s credit file — if that file is located in Canada and has been in existence for at least three years and the information is derived from more than one source — and by confirming that the name, address and date of birth in the credit file are those of the person;

• (d) by doing any two of the following:

  • (i) referring to information from a reliable source that includes the person’s name and address, and confirming that the name and address are those of the person,

  • (ii) referring to information from a reliable source that includes the person’s name and date of birth, and confirming that the name and date of birth are those of the person,

  • (iii) referring to information that includes the person’s name and confirms that they hold a deposit account, a prepaid payment product account or a credit card or other loan account with a financial entity, and confirming that information; or

• (e) by confirming that one of the following entities previously verified the person’s identity in accordance with any of paragraphs (a) to (d) or previously ascertained the person’s identity in accordance with these Regulations, as they read at the time, and that the name, address and date of birth in the entity’s record are those of the person:

  • (i) an entity that is referred to in any of paragraphs 5(a) to (g) of the Act and that is affiliated with the entity that is verifying the person’s identity,

  • (ii) an entity that carries out activities outside Canada that are similar to the activities of a person or entity referred to in any of paragraphs 5(a) to (g) of the Act and that is affiliated with the entity that is verifying the person’s identity,

  • (iii) a financial entity that is subject to the Act and that is a member of the same financial services cooperative or credit union central as the entity that is verifying the person’s identity.

(2) The identity of a person who is under 12 years of age shall be verified for the purposes of subsection (1) by verifying the identity of one of their parents or their guardian or tutor.

(3) The identity of a person who is at least 12 years of age but not more than 15 years of age may be verified by referring under subparagraph (1)(d)(i) to information that includes the name and address of one of the person’s parents or their guardian or tutor, and by confirming that the address is that of the person.

(4) For the purposes of subparagraphs (1)(d)(i) to (iii), the information that is referred to must not be from, or derived from, the same source and neither the person whose identity is being verified nor the person or entity that is verifying their identity can be a source. If information in a credit file is referred to, the credit file must have been in existence for at least six months.

(5) A document that is used by a person or entity to verify identity under subsection (1) must be authentic, valid and current. Other information that is used for that purpose must be valid and current.

(6) In the case of a retail deposit account referred to in subsection 627.17(1) of the Bank Act, if a person or entity cannot verify a person’s identity in accordance with one of paragraphs (1)(a) to (e) of this section, they are deemed to comply with subsection (1) if the person who requests that the account be opened meets the conditions set out in subsections 627.17(1) and (3) of the Bank Act.

(7) The identity shall be verified

• (a) in the cases referred to in section 84, subparagraphs 86(a)(iii) and 88(a)(iii), paragraphs 95(1)(a) to (f), 96(a), 97(1)(a), 100(a), 101(1)(a), 102(a) and 102.1(a), subparagraphs 103(a)(iii) to (vii) and paragraph 104(a), at the time of the transaction;

• (b) subject to paragraph (j), in the cases referred to in subparagraphs 86(a)(i) and (ii) and paragraph 94(a), before the first transaction, other than an initial deposit, is carried out on the account;

• (c) in the case referred to in section 85, before the transaction or attempted transaction is reported under section 7 of the Act;

• (d) in the case referred to in paragraph 87(a), before any credit card issued on the account is activated;

• (e) in the case referred to in subparagraph 88(a)(i), before the prepaid payment product account is activated;

• (f) in the case referred to in subparagraph 88(a)(ii), before the first transaction is carried out by the authorized user on the prepaid payment product account;

• (g) in the cases referred to in paragraphs 89(a) and (d) and subparagraph 89(e)(i), within 15 days after the day on which the trust company becomes the trustee;

• (h) subject to paragraph (j), in the case referred to in paragraph 92(a), within 30 days after the day on which the information record is created;

• (h.01) in the case referred to in paragraph 95(1)(c.1), before the first transport of cash, virtual currency or negotiable instruments is carried out;

• (h.1) in the case referred to in paragraph 95(1)(g), at the time the information record is created;

• (h.2) in the case referred to in paragraph 95(1)(h), at the time of the donation;

• (i) in the cases referred to in subparagraphs 103(a)(i) and (ii), before any funds are disbursed; and

• (j) in the case of a group plan account, at the time a contribution in respect of a member of the group plan is made to the plan.