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The Charter of the French language and its regulations govern the consultation of English-language content.

Verifying the Identity of a Money-Services Business Customer

A money-services business (MSB) must verify the identity of its customers (except for customers using its automated teller machines [ATMs]) before providing a money service to them. The MSB must get the following basic information from each customer:

  • the customer's name;
  • the customer's address;
  • the customer's phone number.

The MSB also has to get additional information from a customer to verify their identity if the customer's transaction is above a certain amount.

Important

An MSB that is unable to verify the customer's identity must refuse to provide a money service under the Money-Services Businesses Act.

End of note

The MSB must be able to verify the identity of customers conducting off-site transactions.

Obligation to verify customer identity

The MSB has to get additional information from a customer to verify their identity in the following cases:

  • The customer wants to conduct a transaction totalling $3,000 or more involving the issue or redemption of traveller's cheques, money orders or bank drafts.
  • The customer wants to conduct a foreign currency exchange transaction totalling $3,000 or more.
  • The customer wants to conduct a funds transfer transaction totalling $1,000 or more.
  • The customer wants to cash a cheque (regardless of the amount).
Important

An MSB must verify the identity of all customers conducting off-site transactions.

End of note

The MSB must verify the identity of all co-contracting parties it deals with in connection with its money-services activities, regardless of the amount or the nature of the contract.

Personal information collected when verifying customer identity

The additional information the MSB has to get from a customer whose identity needs to be verified is shown below.
Personal information that must be collected (in-person and off-site transactions)
Personal information Natural person Legal person
Date of birth Yes No
Main occupation or nature of professional activities Yes No
Nature of business activities No Yes
Third-party transaction

When a third party conducts a transaction on behalf of a customer, the MSB must get the same information from the third party as it does from any other customer. The MSB must also ask for a document that certifies that the third party is authorized to act on behalf of a customer.

The MSB must verify the identity of all co-contracting parties with whom it deals in connection with its money-services activities in the same way it verifies the identity of its other customers.

End of note

Verification methods

Customer identity is verified differently for in-person transactions and off-site transactions.

In-person transaction

For an off-site transaction, the MSB must collect the necessary information for verifying a customer's identity at the time of the transaction as follows:

  • In the case of a natural person, the MSB must ask to see an original of a photo identification document issued by a government (or a government department or agency) that includes the person's name and date of birth. It is strictly prohibited to copy an identification document.
  • In the case of a business, the MSB must obtain a confirmation of the business's legal existence (for example, by verifying the business's registration in the Québec enterprise register).

Off-site transaction

For an off-site transaction, the MSB must collect the necessary information for verifying a customer's identity and then proceed as follows at the time of the transaction:

  • The MSB must obtain the account or other document number that the MSB issued to the customer and in respect of which the money-services business has verified the identity according to the applicable regulations.
  • The MSB must obtain a confirmation that the customer has a deposit account at a financial institution in respect of which the customer's identity was verified by that institution at the time the account was opened.
  • The MSB must obtain confirmation of a transaction using a bank card issued by a financial institution in the name of the customer and in respect of which the customer's identity was verified by that institution at the time the card was issued. 
Note End of note
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