November 14, 2019: FINTRAC updates identity verification guidance, Guideline 5

FINTRAC updates its Methods to verify the identity of an individual and confirm the existence of a corporation or an entity other than a corporation guidance 

After consulting and working closely with businesses, FINTRAC has updated its guidance on Methods to verify the identity of an individual and confirm the existence of a corporation or an entity other than a corporation. The updated guidance reflects amendments to theProceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR) that came into force on June 25, 2019, and the feedback we received from Canadian businesses which helped us create a better product.

Specifically, government-issued photo identification documents used to verify the identity of an individual must be ‘authentic, valid and current’ instead of ‘original, valid and current’ as it was previously; and the prohibition on the use of electronic images as sources of information has been lifted.

This change provides greater flexibility to businesses to effectively comply with PCMLTFA requirements by allowing for the use of new technologies to verify identity and authenticate documents.

Additionally, FINTRAC has also made a slight change to Guideline 5. Terrorist group and Listed person lists can now be found:

·         on Public Safety Canada’s website.

·         in the Schedule of the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism.

FINTRAC is committed to working with businesses to increase their awareness and understanding of their compliance obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and to reducing the associated administrative burden where possible.

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