Given the rise in identity theft and fraudulent transactions, it is understandable that the Law Society of Ontario (LSO) has strict client onboarding requirements. For that reason, our firm has a policy that we follow to ensure onboarding is completed thoroughly and in a timely manner.
The LSO identifies six main elements of client onboarding:
- Obtaining basic identification;
- Verification requirements;
- Obtaining the source of funds for financial transactions;
- Periodic monitoring of the relationship with the client;
- Retaining all onboarding information; and
- Withdrawing from services if illegal conduct is suspected or if the client refuses to comply with the identification process.
Our first step is to clear potential conflicts and prepare a retainer agreement. At this stage, we request identification and use a trusted, secure identity verification platform to help us comply with the LSO’s client identification and verification requirements.
While we complete and verify the identification, a Client ID Verification Form is used to collect the required information for each client. Completing this form for every new client helps ensure we continue to meet our onboarding obligations.
Clients sometimes ask why we request information such as an individual’s occupation or the majority shareholders of a corporate client. We explain that these questions are necessary to meet the LSO’s “Know Your Client” requirements and our professional obligations.
Just as clients may assess whether a law firm is the right fit, law firms must also determine whether a client is appropriate to represent. We must take reasonable steps to ensure clients are not involved in illegal activity and to protect the firm’s integrity.
Christine Allan, Sr. Law Clerk and Firm Operations Manager