Video 5 – Verifying the identity of a client: Reliance method
From: Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
This video explains how to use the reliance 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: 3:06 minutes
Catalogue number: FD4-31/2-2023E-MP4
ISBN: 978-0-660-48504-1
Descriptive transcript of the video “Verifying the identity of a client: Reliance method”
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[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 – Reliance method Text on screen: Financial Transactions and Reports Analysis Centre of Canada Animation: FINTRAC logo with 10 icons representing the following sectors:
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There are 5 methods you can use to verify the identity of a person. |
Text on screen (next to the silhouette of a person):
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This video explains how to use the reliance method. |
Aimation: The list of methods disappear but the silhouette of a person remains in the frame. Beside the person, on the left of the frame, is a smaller version of the sector wheel without the FINTRAC logo. Text on screen (title above the laptop and person): 5) Reliance method |
To use this method, you must rely on identity verification measures that were previously taken by another regulated business referred to in section 5 of the PCMLTFA; |
Animation: The sector wheel remains in the frame and the person is replaced by a closed legal book. Text on screen (title of the book): Proceeds of Crime (Money Laundering) and Terrorist Financing Act Animation: The title of the book is replaced by its acronym form (PCMLTFA) as the book then opens to a centrefold page. Text on screen: |
or by a foreign affiliate of yours or another regulated business that carries out activities outside of Canada that are similar to those referred to in paragraphs 5(a) to (g) of the PCMLTFA. |
Animation: The sector wheel is replaced by a spinning globe while the open book remains in the frame. Text on screen: Foreign entity Animation: The page turns. Text on screen: |
Before relying on measures previously taken by a foreign affiliate, you must consider the risk of money laundering or terrorist activity financing in their jurisdiction. |
Animation: All icons disappear from the frame except for the globe. Circling the globe are 2 icons representing money laundering and terrorist activity financing. |
You must also be satisfied that their policies are similar to that of the client identity verification, record keeping, and compliance program requirements under Canada’s PCMLTFA. |
Animation: A manual replaces the globe and the 2 other icons disappear behind it. Text on screen (title of the manual): Compliance policies Animation: Dotted lines extend from the manual to 3 other icons that appear one-at-a-time around the manual:
Text on screen: |
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These include:
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Animation: The manual opens to a centerfold page with a meter icon that ranges from “low risk” to “high risk” on the left page, and the icons for money laundering and terrorist activity financing on the right page. The needle on the meter moves from “low risk” to “high risk” Animation: A stamp appears across the 2 icons for money laundering and terrorist activity financing on the right page Text on screen (stamped text): Enhanced measures |
The foreign affiliate’s compliance with those policies must also be subject to the supervision of a competent and legal authority of that jurisdiction, like FINTRAC. |
Animation: The manual closes revealing its title once again. A magnifying glass enters the frame and its lens scans across the cover of the manual. Text on screen:
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When you rely on measures previously taken by another regulated business, or foreign affiliate, you must confirm that the information you acquired from them is that of the person whose identity you are verifying. |
Animation: The frame is replaced by the silhouette of a person in the center, the sector wheel rotating clockwise reappears on the right side of the silhouette, and a spinning globe reappears on the left side of the silhouette. Lines carrying information move from the sector wheel and globe to the silhouette. Text on screen (same information appearing twice and moving from the globe and the sector wheel to the silhouette):
Animation: A green checkmark appears in front of the silhouette. |
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You must be satisfied that:
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Animation: The globe, sector wheel and lines carrying information are replaced by unfolding scrolls on either side of the silhouette. Text on screen: valid current Animation: The scrolls roll back up and disappear. Dotted lines extend from the silhouette connecting to 3 icons that pop up beside it. The icons include:
Text on screen: |
You must also have a written agreement or arrangement in place with the other regulated business, foreign affiliate or the foreign affiliate of another regulated business that, upon request and as soon as feasible, requires them to provide you with a detailed description of the method they used and the information they referred to in order to verify the person's identity. |
Animation: A document floats across the frame, landing on the left side of the silhouette, as folder appears on its right side. Text on screen: Agreement (titled document) Animation: A hand cursor icon appears in the frame, tapping the folder open to reveal a document with recorded information about the person whose identity is being verified. Text on screen: John Doe Personal information Method used Animation: A green checkmark appears on the silhouette of the person. |
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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:
Text on screen: Proceeds of Crime (Money Laundering) and Terrorist Financing Act |
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Please refer to the PCMLTFA and associated Regulations for the full description of your obligations. |
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. |
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[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] |
Canada wordmark |
Related links
- Methods to verify the identity of persons and entities
- Video 1 – Verifying the identity of a client: Government-issued photo ID method
- Video 2 – Verifying the identity of a client: Credit file method
- Video 3 – Verifying the identity of a client: Dual-process method
- Video 4 – Verifying the identity of a client: Affiliate method
- Date Modified: