FINTRAC's Updated Guidance On Methods To Verify Identity: A New Spin On "Authentic"

The Financial Transactions and Reports Analysis Centre of Canada (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 (Guidance). The Guidance follows recent amendments to the regulations (Regulations) to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) in respect of identity verification.

On the surface, the amendments to the Regulations appeared to modernize the previous identity verification regime by allowing for remote identity verification using only a single identity document (ID) as a source. However, FINTRAC's Guidance hinders that progress by prohibiting the use of Skype and similar telephony technology as a standalone method for identity verification where the parties are not physically together.