banner banner

I am acting for a client with respect to the completion of a commercial transaction. I have prepared the necessary documentation to complete the transaction, but the closing funds will not be flowing through my trust account as my client will be paying these directly to the other side in accordance with the agreement and closing documentation. Is this a situation in which I have to verify my client’s identity?

Yes. The verification obligations apply whenever you engage in or give instructions in respect of the receiving, paying or transfer of funds, unless an exemption applies. Although the funds are not passing through your trust account in this transaction, you are instructing with respect to the transfer of funds.