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Video 3 – Verifying the identity of a client: Dual-process method

From: Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

This video explains how to use the dual-process method to verify the identity of a person, which is one of the 5 prescribed methods by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the Act) and associated Regulations.

It is intended for businesses or reporting entities, subject to the Act and associated Regulations.

Video

Video length: 3:03 minutes

Descriptive transcript of the video “Verifying the identity of a client: Dual-process method"
Narration (audio) On screen description (text or action)

[Start of video]

[Music]

At the Financial Transactions and Reports Analysis Centre of Canada (or FINTRAC), we are committed to helping regulated businesses meet their compliance obligations.

This includes the fundamental requirement to verify the identity of a client when conducting certain transactions.

Text on screen: Verifying the identity of a client – Dual-process method

Text on screen: Financial Transactions and Reports Analysis Centre of Canada

Animation: FINTRAC logo with 10 icons representing the following sectors:

  1. accountants
  2. agents of the Crown
  3. British Columbia notaries
  4. casinos
  5. dealers in precious metals and precious stones
  6. financial entities
  7. life insurance companies, brokers and agents
  8. money services businesses
  9. real estate
  10. securities dealers

There are 5 methods you can use to verify the identity of a person.

Text on screen (next to the silhouette of a person):

  1. Government-issued photo identification document
  2. Credit file
  3. Dual-process
  4. Affiliate or member
  5. Reliance

This video explains how to use the dual-process method.

Animation: A quality check ribbon appears next to the silhouette of a person.

Text on screen (above the quality check ribbon): 3) Dual-process method

To use this method, refer to 2 separate reliable sources that can confirm any 2 of the following categories of information:

Animation: The silhouette disappears. A second quality check ribbon appears.

  • the person’s name and address
  • the person’s name and date of birth or
  • the person’s name along with a confirmation that they have either:
    • a deposit account
    • prepaid payment product account or credit card
    • or other loan account with a financial entity

Animation: The frame divides into 3 parts, each containing a different image. The images are:

  1. a silhouette of a person with a name tag and an icon representing an address
  2. a silhouette of a person with a name tag and an icon representing a date of birth
  3. a silhouette of a person with a name tag and icons representing:
    • a deposit account
    • a prepaid payment product or credit card account
    • and a loan account

This information must also be valid and current.

Animation: Two text boxes appear on screen.

Text on screen: “valid” and “current”
Valid means legitimate or authentic and does not appear to have been altered or had any information redacted.

Animation: An open book appears with the word “valid” and its definition.

Text on screen: valid, /ˈvaləd/ (adjective), legitimate or authentic and does not appear to have been altered or had any information redacted

Current means that the document is up to date and is not expired when the ID is verified.

Animation: The book disappears. Another open book appears with the word “current” and its definition.

Text on screen: current, /ˈkərənt/ (adjective), up to date and is not expired when the ID is verified

A reliable source of information is an originator or issuer of information that is considered:

  • trustworthy
  • well known
  • and reputable

For example:

  • a federal, provincial, territorial or municipal government
  • a crown corporation
  • a federally regulated financial institution or
  • a utility provider

Text on screen: A reliable source of information is an originator or issuer of information that is considered trustworthy, well known and reputable.

Animation: A quality check ribbon appears at the centre of the frame connecting to 4 icons representing:

  • a federal, provincial, territorial or municipal government
  • a crown corporation
  • a federally regulated financial institution
  • a utility provider

A source cannot be:

  • social media
  • the person whose identity you are verifying
  • or you, the reporting entity verifying their identity

Animation: The frame transitions to new icons representing:

  • social media
  • the person
  • the reporting entity (you)

As the narrator describes each source, the corresponding icon is crossed with an X.

Reliable information for verifying someone’s identity could be found in:

  • statements
  • letters
  • certificates
  • forms
  • or other informational items like an ID card

Animation: The text “Reliable information” is written as 5 images appear one after the other, representing:

  • a statement
  • a letter
  • a certificate
  • a form
  • an ID card

These can be provided as originals or versions of the originals in another format like:

  • a fax
  • photocopy
  • scan
  • or digital image

Animation: The images transform:

  • the statement is replaced by a fax machine
  • the envelope becomes a photocopier
  • scan lines cross over the certificate
  • the form turns into a photo on a smart phone

The images disappear.

You can use a Canadian credit file as one of the 2 pieces of information, but it must be at least 6 months old.

Animation: A document entitled “credit file” appears with a Canadian flag on the top right corner. A red stamp appears across the document with the text “At least six months old”.

When using the dual-process method to verify a person’s identity, you must use a different source for each category of information that you choose.

The information from these 2 sources must match the information provided by the person.

Animation: A silhouette of a person appears at the centre of the frame with 4 icons representing:

  • a federal, provincial, territorial or municipal government
  • a crown corporation
  • a federally regulated financial institution
  • a utility provider

Two quality check ribbons appear on each side. A checkmark appears on the silhouette.

This video series is designed to help businesses understand their identity verification obligations under Canada’s federal anti-money laundering/anti-terrorist financing law.

Animation: The frame transforms into the FINTRAC logo with 10 icons representing the following sectors:

  1. accountants
  2. agents of the Crown
  3. British Columbia notaries
  4. casinos
  5. dealers in precious metals and precious stones
  6. financial entities
  7. life insurance companies, brokers and agents
  8. money services businesses
  9. real estate
  10. securities dealers

Text on screen: Proceeds of Crime (Money Laundering) and Terrorist Financing Act

Please refer to the PCMLTFA and associated Regulations for the full description of your obligations.

Text on screen: Text on screen: PCMLTFA

Together, we can all help to safeguard Canadians and the integrity of Canada’s financial system

Animation: Then the logo morphs into a map of Canada where lines light up as they crisscross and connect various dots on the map.

[Music fading out]

Text on screen: For more information about your compliance obligations, including other ways to verify the identity of a client, visit: fintrac-canafe.canada.ca

[End of video]

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