Model Rules to Fight Money Laundering and Terrorist Financing
As is the case for any person in Canada, it is illegal for members of the legal profession to knowingly participate in crimes involving money laundering or terrorist financing. To ensure that legal professionals are not unwittingly used by their clients to help with these activities, all of Canada’s law societies enforce rules of conduct based on model rules developed by the Federation.
Members of the legal profession are prohibited from accepting more than $7,500 in cash to ensure that individuals involved in money laundering or terrorist financing cannot use their legal advisors’ trust accounts for illegal activities. The Federation’s Model No-Cash Rule is available here.
Client Identification and Verification Rules
Members of the legal profession are bound by strict “know-your-client” rules to ensure that they are providing advice only to bona fide clients whose identity can be reliably ascertained. The Federation’s Model Rule on Client Identification and Verification is available here.