Law Society Establishes New Client Identification and Verification Requirements
Recently, convocation at the Law Society of Upper Canada approved an amendment to By-Law 7.1 [Operational Obligations and Responsibilities] that has the effect of establishing stricter guidelines with respect to client identification and verification.
A copy of the notice to the legal profession describing the changes can be found here and applies to both lawyers and paralegals.
Under the amendment, which is effective October 31, 2008, a lawyer who is retained must obtain certain information from the client, including name, address, telephone number, and occupation. If the client is an organization, the information the lawyer must obtain includes the client’s business identification number, general type of business, place of incorporation, and identity of the organization’s instructing officers.
Where a lawyer receives, pays, or transfers funds on behalf of a client, certain verification rules will be triggered. Specifically, the lawyer must take “reasonable steps” to verify the client’s identity by obtaining independent documentation, such as a driver’s license, passport or birth certificate (or, in the case of an organization, a partnership agreement or articles of incorporation.
For most practitioners, this amendment likely codifies what they already do. In any event, it’s worthwhile to have a look and make sure that your practice policies conform to the guidelines in the new amendment.
Have a great day!
Megan F. Connolly
