Federation fights money laundering with new “know-your-client” model rule

Posted on March 31, 2008

The Federation of Law Societies of Canada has taken another step to ensure lawyers and Quebec notaries are at the forefront of the fight against money laundering by adopting a model rule on client identification, verification and record keeping.

The new “know-your-client” rule outlines the steps lawyers and Quebec notaries must take, and the records they must keep, to verify a client’s identity. These actions will help members of the legal profession determine whether a client is attempting to use them to improperly transfer funds.

All Canadian law societies have undertaken to adopt local rules mirroring the substance of the model rule as soon as possible.

The Federation’s Model Rule is available here. (December 2008 version)