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There is a new requirement in the rule to monitor the professional business relationship. What is the requirement and what does it entail?

You are required to periodically monitor the professional business relationship with your client while retained in respect of matters involving financial transactions. It may be useful to conceive of this obligation as a periodic “check-in” with a client during an ongoing retainer following the initial verification of identity and once information about the source of funds is obtained.

You must periodically assess whether the client’s information in respect of their activities and the source of their funds is consistent with the purpose of the retainer and the information you have obtained about the client. You also need to periodically assess whether there is a risk that you might be assisting in dishonesty, fraud, or other illegal activity. Monitoring inquiries may be triggered when your client provides you with new facts about their activities or source of funds, or when you are faced with unexpected client behaviour. This obligation is consistent with your professional duty to be vigilant about potential client dishonesty and diligent in avoiding fraud and other illegal activity.

You should use your discretion in defining the frequency of the monitoring. It will depend on factors such as the client, the nature of the work, the anticipated duration of the retainer, and the type of services provided.

You are required to keep a record of your monitoring inquiries and copies of any documents that arise from your inquiries.